- /
- All Industries /
- Finance /
- Financial Services /
- Banking and Payments /
- US Payment Preferences Market Report 2023
Stay ahead of the curve in the US finance market with Mintel’s US Consumer Payment Preferences Market Report. Our full report is packed with consumer-led market intelligence, the latest consumer payment trends, and analysis of future trends and market opportunities. You’ll receive insights from our comprehensive consumer payments market research that will help you align your business strategies with audience demands.
Use this Report to Quickly Understand the Following Areas
- Consumers’ payment preferences for general purchases.
- Digital payment method usage.
- Payment preferences for specific purchase types.
- Consumer attitudes and behaviours toward financing options.
- Online and mobile payment behaviours.
US Consumer Payment Preferences
- US consumer payment trends: Cash has made a comeback. 2023 has seen cash increase in consumer payments, up 3% on 2021. The rising cost of credit card interest has driven consumers towards debt-free payments, as a result credit card use has fallen 2% after years of steady growth.
- Payment services market share: Nearly one third of consumers used Cash App in the past year, a higher adoption level than Venmo or Zelle. Usage of Cash App has accelerated, bucking the trend of slowing growth for many digital payment options.
- US consumer attitudes towards payments: Credit card users have grown accustomed to alternating between multiple payment types in order to maximise their rewards, with 58% of consumers using different cards across different categories.
Future US Consumer Payment Trends
While credit cards remain the top overall payment preference, Gen Z consumers far prefer using debit cards and cash. Gen Z’s aversion to credit cards suggests a future in which consumers alternate between an array of physical and digital payments rather than simply choosing between debit and credit.
Overall, consumers’ appetite for digital payments continues to expand rather than consolidate, broadening the competitive landscape.
To learn more about future trends in US payment preferences and opportunities for the financial services market, purchase our full US consumer payment preferences market report. For more information on the industry, take a look at our extensive financial services market research.
Popular Payment Service Providers Covered in this Report
PayPal, Cash App, Venmo, Zelle, Apple Pay, Google Pay, Perpay, Extra.
Expert Analysis from a Specialist in the Finance Industry
This report, written by Patrick Rahlfs, a senior analyst in the financial services sector, delivers in-depth commentary and analysis to highlight current payment trends in the US finance industry and add expert context to the numbers.
The past couple of years have seen a rare reversal in trends within payment preferences, with credit cards declining as a top choice and cash climbing back upward. Recent economic developments have had a significant impact on the payments space, with the pandemic driving digital payment adoption and inflation causing consumers to extend their usage of credit cards to deal with rising prices. A recognition from consumers of the dangerous compounding effects of higher card balances and rising interest rates has driven a resurgence of positive attitudes toward cash and debit as responsible ways to make payments and manage budgets.
Patrick Rahlfs
Senior Research Analyst
Collapse All
-
Overview
- What you need to know
- This Report looks at the following areas
- Definition
- Market context
- What you need to know
-
Executive Summary
-
- Top takeaways
- Consumer trends
- Cash makes a comeback
- Figure 1: General payment preference by year, 2019-2023
- Cash App surpasses Venmo and Zelle
- Figure 2: Digital payment usage by year, 2019-2023
- Gen Z’s preferences are flexible, with digital options gaining traction
- Figure 3: Gen Z payment preferences, 2023
- Competitive strategies
- Credit score is a recurring theme across multiple payment types
- Figure 4: Perpay BNPL paid Facebook ad, 2023
- Credit cards embrace balance transfers to allay debt concerns
- Figure 5: Share of credit card acquisition offers containing an introductory APR on balance transfers, 2020-23
- Market predictions
- Figure 6: Payment preferences category outlook, 2023-28
- Opportunities
- Rewards debit cards can offer value without risk
- Banking apps must improve budgeting tools
- Mobile wallet adoption can catalyze niche products
-
-
Market Size
- Share of cash payments stabilized
- Figure 7: Share of payment instrument use for all payments, by year, 2016-2021
- In-person purchases rebounded after pandemic
- Figure 8: Share of purchases/P2P payment made in-person versus online or remote, 2016-21
- Online card payments surpassed in-person in total value
- Figure 9: Share of card payment by value, through in-person and remote channels, 2015-20
- Credit card originations remain strong
- Figure 10: Number of open credit card accounts, Q4 2012-Q4 2022
- Share of cash payments stabilized
-
Market Drivers
- Young consumers are most vulnerable to credit card delinquency
- Figure 11: Quarterly transition into serious delinquency (90+ days) for credit cards by age, 2015-23
- Credit card balances are rising
- Figure 12: Credit card debt balance, 2017-22
- Personal Savings Rate sits below 5%
- Figure 13: Personal Savings Rate, 2015-23
- Consumer Price Index is cooling, but is still elevated
- Figure 14: Year-over-year change in Consumer Price Index, 2015-23
- Young consumers are most vulnerable to credit card delinquency
-
Competitive Strategies and Market Opportunities
- Cash App spotlights its Cash Card
- Figure 15: Cash App cash card online video ad, 2023
- Perpay focuses on credit score through BNPL
- Figure 16: Perpay buy now, pay later paid Facebook ad, 2023
- Fintech Extra introduced new TV ads for its credit-debit hybrid
- Figure 17: Extra Card national TV ad, 2023
- Zelle portrays cash as scary in national TV ads
- Figure 18: Zelle national TV ad, 2023
- Cash App spotlights its Cash Card
-
Payments Preferences – Fast Facts
-
-
Preferred Payment Methods
- Credit cards are the most preferred payment method
- Figure 19: Payment preferences, 2023
- Credit card popularity declines while cash and debit surge
- Figure 20: General payment preference by year, 2019-23
- Cash preference rose across all generations
- Figure 21: Cash as top payment preference, by generation, 2021 vs 2023
- Gen Z has the broadest preferences, signaling opportunity
- Figure 22: Gen Z payment preferences, 2023
- Credit cards are the most preferred payment method
-
Digital Payment Method Usage
- Cash App became the second most popular digital payment method
- Figure 23: Digital payment usage, 2023
- More than half of Black consumers used Cash App in the past year
- Figure 24: Digital payment usage, by race and Hispanic origin, 2023
- Cash App accelerated growth while Zelle stagnated
- Figure 25: Digital payment usage by year, 2019-23
- Gen Z continue to embrace more digital payment methods
- Figure 26: Gen Z digital payment usage by year, 2021-23
-
- Figure 27: Number of online or mobile payment systems used, by generation, 2023
- Cash App became the second most popular digital payment method
-
Payment Preference by Purchase Type
- Credit cards lead among large and online purchases
- Figure 28: Payment method by purchase type, 2023
- Young consumers lean toward debit cards and PayPal on their phones
- Figure 29: Payment preference for making online purchases from a mobile device, by generation, 2023
- Older consumers growing to prefer charging large purchases
- Figure 30: Large purchases payment preference by generation, 2023
- Credit cards lead among large and online purchases
-
Attitudes toward Financing Options
- More than one in five consumers have used BNPL through a retailer
- Figure 31: Attitudes toward financing purchases, 2023
- BNPL adoption has grown, with retailers still leading
- Figure 32: Attitudes toward financing purchases by year, 2021 vs 2023
- Gen Z hesitant to use BNPL on large purchases
- Figure 33: Attitudes toward financing purchases, by generation, 2023
- More than one in five consumers have used BNPL through a retailer
-
Mobile Payment Behaviors
- One in three consumers have their credit card stored in their phone
- Figure 34: Mobile payment behaviors, 2023
- Rise in digital payments boosts social media as a P2P channel
- Figure 35: Mobile payment behaviors by year, 2019-23
- One in three consumers have their credit card stored in their phone
-
Attitudes toward Payments
- Ease of use of smartphone payments allow cash to be a backup
- Figure 36: Attitudes toward smartphone payments and cash, 2021 vs 2023
- Higher-income consumers have charged more purchases in the past year
- Figure 37: Credit card and debit card usage, by household income, 2023
- Two in three Millennials have cards for specific categories
- Figure 38: Use of different credit cards for different purchase categories, by generations, 2023
- Parents used cards and BNPL more to cope with price environment
- Figure 39: Use of credit cards, debit cards, and BNPL, by parental status, 2023
- Ease of use of smartphone payments allow cash to be a backup
-
Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Marketing creative
- Abbreviations and terms
- Abbreviations
- Data sources
About the report
Below is a sample report, understand what you are buying.
Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.
Other Popular Reports
US Hispanic Payment Preferences Market Report 2022
$4,995 (Excl.Tax)
“The Covid-19 pandemic and uncertain financial times accelerated many of the shifts that were already occurring within the payment landscape. Latinos are seeking brands they can trust and...
Find out moreUS Financial Services Market Report 2024
$4,995 (Excl.Tax)
Rising demand for well-rounded financial products will catalyze competition among financial brands in 2024, with non-quantitative features rising to prominence. Patrick Rahlfs, Senior Research Analyst ...
Find out moreUS Health Insurance Market Report 2023
$4,995 (Excl.Tax)
The biggest winners will be insurers that remain innovation-driven while maintaining a customer-centric ethos to ensure long-term and value-filled relationships. Amr Hamdi, Finance Analyst ...
Find out moreUS Digital Banking Market Report 2022
$4,995 (Excl.Tax)
“The pandemic tested FIs’ resilience with regards to adapting to heightened consumer demand for digital banking services. Providers emerged stronger on the other side, with adoption surging and...
Find out moreUS Credit Cards Market Report 2023
$4,995 (Excl.Tax)
A focus on credit building and openness to annual fees portends expansion at both extremes of the credit card product spectrum. Patrick Rahlfs, Senior Research Analyst ...
Find out moreTrusted by global industry leaders
“Mintel helps us when we want to know something quickly – it provides fast answers to our questions. If we need to get a view of what’s going on in a particular market it’s very useful.
When carrying out background research, I find Mintel an excellent starting point.
The fact that it covers so many markets is a big plus for me– instead of having to buy specialist products in each area we are interested in, especially when we only require a brief view on a particular market, we can go to Mintel for help as a one-stop shop. I find Mintel a useful and valuable resource.”
Ben Zeidler, Director - Research and Analytics, Tenth Wave
“When I’m investigating specific sectors I tend to use Mintel reports for their forecasting, which I’ve always found to be very accurate.
They also offer really broad and deep coverage in their reports. They are very, very detailed. For example, we were able to gain insight across a wide range of business areas from just one report, proving that Mintel is excellent value for money.
So overall, it’s the level of detail and the quality of forecasting that really stand out for me.”
Rebecca Green, Market Insight Manager, Wincanton
“We also use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.
Mintel gives us all that. It’s a great brand and one that is trusted by clients.”
Marie Stafford, European Director, The Innovation Group, Wunderman Thompson
We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.
It’s mostly me who uses them but if I know someone is working on something specific I will share the relevant reports.
As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.
Andrew Neeson, Market Intelligence Manager, VocaLink
At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.
Alana Gavin, VP Research and Insights, Jackman
