Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Consumer Payment Preferences - US - September 2019

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 you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

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

                                                          Consumer Payment Preferences - US - September 2019

                                                          £3,435.47 (Excl.Tax)