Wallets Continue to Show Growth but Gen Z Returns to Cash, Says Report

Wallets Continue to Show Growth but Gen Z Returns to Cash, Says Report

September 1, 2022

Mobile wallets grew in popularity in the past year for both in-store and online purchases, according to a new report from InComm Payments. While PayPal remained the most popular mobile wallet, used by 60 percent of those polled, P2P wallets Cash App and Zelle posted the biggest gains in usage. Cash App was the second-most used after PayPal, cited by 32 percent of respondents (up 39 percent from 2021 to 2022), while Zelle was used by 21 percent of consumers (up 40 percent year-over-year).

According to Incomm’s 2022 Annual Payments Report, wallets are still used mostly for online purchases, but in-store and peer-to-peer transactions are gaining ground as favored channels. While 65 percent of those polled reported using wallets for online purchases (seven percent fewer than last year), 53 percent said they use them in stores and 47 percent indicated they use them for P2P payments (a four percent increase for both from last year).

“Brands and retailers should pay attention to shifting consumer preferences to ensure they can meet expectations for convenient payment experiences,” said Brian Parlotto, executive vice president at InComm Payments. “Our report highlights trends and attitudes around traditional and emerging payment methods, examining how consumers navigate the wide range of payment options available today.”

Another interesting finding in the survey is the comeback cash is making with Gen Z consumers. While digital payments continue to grow, no age group used cash more. Young consumers identified cash as their favorite way to pay and were more likely than any other generation to use cash for big-ticket items or for dining.

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