Given so many ways so to pay for something, which one is the most popular and what do these trends look like? That's exactly what we're going to dig into in this article.
There are lots of ways to pay for something. The following is a small list of some common methods:
• Credit Card
• Debit Card
• Mobile/Digital Wallet
• Voice activated or smart speakers
A 2017 study conducted by payment processor TSYS provides some interesting insights into payment methods. Only 26% of respondents own a voice-activated speaker. The age group most likely to make payments through these devices were in the 25-44 years of age group with a 76% rate.
In the same TSYS survey, 25% of respondents hadn't heard of P2P payments. A 2018 study by eMarketer found that 27.9% (64.4 million) of mobile users had used P2P payments in 2017. That number is expected to jump to 40.4% (96 million) by 2019. eMarketer also estimates that by 2022, 52.5% of mobile phone users will have made at least one P2P payment. P2P payments certainly have a bright future ahead of them.
Despite their ease of use, credit and debit cards aren't the top choice when it comes to payment methods by consumers. The Federal Reserve Bank of San Francisco's 2018 Findings from the Diary of Consumer Payment Choice shows that cash still dominates at 30%. A close second is debit cards at 27%, followed by credit cards with a 21% share.
Cash declined from 33% in 2015. Debit cards have remained at 27% for the past two years with credit cards growing from 18% in 2015 and 2016 to 21% in 2017.
Given all of the electronic options available for making payments, it might sound odd that cash continues to secure the top spot. However, consumers prefer it for smaller transactions, of which they tend to have many. 55% of all payments under $9.99 are paid in cash.