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Description

Description

Covered in this report

This report examines consumer payment behaviors and attitudes toward a variety of payment types. Subjects analyzed include:

  • Preferred payment type
  • Payment methods by purchase type
  • Mobile payment system use
  • Motivation to switch payment methods

"How we pay for things is a fundamental financial decision that most people make several times a day. Technology has allowed consumers to make payments from most of their devices, yet credit, debit, and cash remain the most popular ways to pay."

- Chris Shadle, Financial Services Analyst

This report will look at the following areas:

  • Cards and cash remain top of wallet…
  • …while wallets are becoming increasingly digital
  • But there is a great deal of variance in technological willingness, fear
  • And there will, according to most consumers, always be a need for cash

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Market overview
          • Key trends
            • Cards and cash remain top of wallet…
              • Figure 1: Preference for cash/debit/credit, by generation, July 2019
            • …while wallets are becoming increasingly digital
              • Figure 2: Mobile wallet adoption, by Age, July 2019
            • But there is a great deal of variance in technological willingness, fear
              • Figure 3: Storing credit card behavior online, perception and behavior, July 2019
            • And there will, according to most consumers, always be a need for cash
              • Figure 4: Attitudes toward cash, July 2019
            • What it means and what’s next
            • The Market – What You Need to Know

              • Number and value of payments steadily increasing in every category but checks
                • Retail industry keeps chugging along, ecommerce is chugging faster
                  • Consumer sentiment is high, but wounded
                  • Market Size

                    • Payments on the rise (except for checks)
                      • Figure 5: Trends in noncash payments, by number, 2000-17
                    • Total cards payments grew by half a trillion dollars from 2016-17
                      • Figure 6: Total card payments, 2016 and 2017
                  • Market Factors

                    • Consumer sentiment near all-time high, but takes historic stumble
                      • Figure 7: Consumer Sentiment Index, January 2007-August 2019
                    • Retail industry continues to post gains
                      • Figure 8: Total US retail sales and fan chart forecast, at current prices, 2013-23
                    • eCommerce growth outpaces total retail by 4:1, but comprises only 10% of total sales
                      • Figure 9: eCommerce share of total US retail sales, at current prices, 2013-23
                      • Figure 10: Total US retail ecommerce sales and fan chart forecast, at current prices, 2013-23
                  • Key Players – What You Need to Know

                    • Mobile wallets are working, but brand loyalty might suffer
                      • Microlending has a macro future
                        • Contactless: here before, here again
                        • What’s Working?

                          • People are actually using mobile wallets (and why that isn’t always a good thing)
                            • Figure 11: Mobile wallet adoption, by Age, July 2019
                          • Bentley bought with Bitcoin
                            • Cash App benefits from hip-hop collaboration
                            • What’s Struggling?

                              • Visa Checkout checks out; Chase Pay paid the piper
                                • Figure 12: Visa Next, youtube video, April 2019
                                • Figure 13: Chase Pay closure announcement, August 2019
                              • Payment indifference and concern for digital privacy are common
                                • Figure 14: Storing credit card behavior online, perception and behavior, July 2019
                              • Card fees are driving New Yorkers irate
                              • What to Watch?

                                • Microlending: old concept, new arena
                                  • Figure 15: Attitudes toward cash, July 2019
                                  • Figure 16: Affirm & Walmart partnership, August 2019
                                • The Fed to build new system to speed up transfers
                                  • Contactless: speeding up commutes and payments
                                    • NY subway goes contactless
                                      • Figure 17: American Express, MTA partnership email, August 2019
                                    • Chicago getting on board too
                                      • Figure 18: Ventra and Apple Pay in Chicago, August 2019
                                    • Haven’t we seen this before?
                                    • The Consumer – What You Need to Know

                                      • Tried and true: consumers still prefer cards and currency
                                        • After years of talk, people are finally using mobile wallets
                                          • PayPal is an institution
                                            • Credit is most popular online, especially on desktop
                                              • Cash
                                              • Favorite Ways to Pay

                                                • Cards remain top of wallet
                                                  • Figure 19: Preferred payment methods, ranked, July 2019
                                                • Cash and debit favored by younger consumers, older prefer credit
                                                  • Figure 20: Preference for cash/debit/credit, by generation, July 2019
                                                • PayPal leads pack of other preferred payment methods
                                                  • Figure 21: Other preferred payment methods, July 2019
                                              • Mobile Wallets

                                                • Mobile wallets are finally here!
                                                  • Figure 22: Mobile wallet adoption, by Age, July 2019
                                                • Mobile wallet popularity grew 40% year over year
                                                  • Figure 23: Mobile wallet popularity, June 2018-July 2019
                                                • What are the roadblocks to mobile wallet adoption?
                                                  • Figure 24: Mobile wallet behaviors, July 2019
                                                • What might move the needle even further for mobile wallets?
                                                  • Figure 25: Motivation to adopt mobile wallet, July 2019
                                              • There’s an App for That: Digital Payment Methods

                                                • In a crowded field, PayPal stands apart
                                                  • Figure 26: Payment systems used in past year, by race and ethnicity, July 2019
                                                • P2P Battle: Venmo v Zelle v Cash App
                                                  • Figure 27: Payment systems used in past year, by age, July 2019
                                                • Racial and ethnic variations in payment app brand use
                                                  • Figure 28: Payment systems used in past year, by race and ethnicity, July 2019
                                              • Preferred Payment by Type of Purchase

                                                • Cash losing its grip on in-store and personal payments
                                                  • Figure 29: In-store payments, preferred method by age, July 2019
                                                • Credit is the default for online shopping
                                                  • Figure 30: Online payments, preferred methods for desktop vs mobile, July 2019
                                                • Consumers prefer credit for large purchases, ACH for bills
                                                  • Figure 31: Preferred payment methods for large purchases and bills, July 2019
                                              • Attitudes & Behaviors

                                                • Consumers may be afraid to store data online, but they’re doing it anyway
                                                  • Figure 32: Storing credit card behavior online, perception and behavior, July 2019
                                                • Most have a favorite card, but some rarely think about how they pay
                                                  • Figure 33: Card favoritism versus card indifference, by generation, July 2019
                                                  • Figure 34: Current homepage, August 2019
                                                • Cash isn’t going anywhere soon
                                                  • Figure 35: Attitudes toward cash, July 2019
                                                • Cash use is highest among minority groups
                                                  • Figure 36: Payment type behaviors – CHAID – Tree output, July 2019
                                                  • Figure 37: Payment type behaviors – CHAID – Table output, July 2019
                                                • Social media is now a payments arena…
                                                  • Figure 38: Social payments and in-app purchase behavior, by age, July 2019
                                                • And Facebook may help drive crypto awareness
                                                  • Figure 39: Attitudes and behaviors toward cryptocurrency, by gender and age, July 2019
                                              • Appendix – Data Sources and Abbreviations

                                                • Data sources
                                                  • Fan chart forecast
                                                    • Consumer survey data
                                                      • Direct marketing creative
                                                        • Abbreviations and terms
                                                          • Abbreviations
                                                          • Appendix – The Market

                                                              • Figure 40: Number of non-cash payments, by type, select years 2000-17
                                                              • Figure 41: Credit card ownership, 18-24 year olds, trended data, 2010-2018
                                                              • Figure 42: Credit card ownership, 25-34 year olds, trended data, 2010-2018
                                                              • Figure 43: Credit card ownership, 35-44 year olds, trended data, 2010-2018
                                                              • Figure 44: Credit card ownership, 45-54 year olds, trended data, 2010-2018
                                                              • Figure 45: Credit card ownership, 55-64 year olds, trended data, 2010-2018
                                                              • Figure 46: Credit card ownership, 65+ year olds, trended data, 2010-2018

                                                          About the report

                                                          This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                          • The Consumer

                                                            What They Want. Why They Want It.

                                                          • The Competitors

                                                            Who’s Winning. How To Stay Ahead.

                                                          • The Market

                                                            Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                          • The Innovations

                                                            New Ideas. New Products. New Potential.

                                                          • The Opportunities

                                                            Where The White Space Is. How To Make It Yours.

                                                          • The Trends

                                                            What’s Shaping Demand – Today And Tomorrow.

                                                          Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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