PEWAUKEE, Wis.–Consumer adoption of mobile payments is up significantly, and it appears the coronavirus pandemic and stay-at-home orders are the major drivers, according to new research.
Among the findings in Fiserv’s Expectations & Experiences Quarterly Consumer Trends Research Consumer Payments 2020:
- Consumer adoption of mobile payments is up significantly. For the first time, a slight majority report using mobile banking in the past 30 days. Mobile bill pay is increasing as well, with significantly more consumers reporting recent use than in 2018.
- Adoption of mobile banking services is up. For the first time, a slight majority (53%) report using mobile banking in the past 30 days. Usage has trended upward, increasing from 42% in the 2016 survey and 47% in the 2018 survey. The increases come as part of an overall increase in mobile payments, Fiserv said. For example, digital wallet use is up from 15% in 2018 to 26% in 2019. Similarly, mobile bill pay is on the rise, with 40% of consumers reporting they have used the service recently, up from 29% in 2018.
- Consumers – especially younger ones – are embracing P2P options offered by their financial organizations. Recent use of financial organizations’ person-to-person (P2P) services is up, with Millennial and Gen X consumers leading much of the growth, Fiserv said.
Use of financial organizations’ person-to-person (P2P) payment services is up – from 17% to 29%. Much of the growth is led by Millennials, with 53% saying they’ve used the service, which is up from 35% in the 2018 survey. While younger consumers show the largest increases, P2P use across all age groups has risen significantly.
“Convenience and the opportunity to save time and hassle are the primary motivators for usage. Importantly, expectations for funds availability are high, with 52% of current users of any P2P service saying they expect funds to be available within a few minutes,” Fiserv said in its analysis.
- People are increasingly confident in the security of newer digital options. The research found perceived security of financial organization mobile apps and digital wallets is on the rise, suggesting growing comfort with the mobile channel overall. Consumers’ perceptions regarding the security of financial organizations’ P2P services is also up significantly over last year. In all cases, the share of consumers saying the channels are “very secure” has risen significantly.
- Automatic recurring payments are now the norm, while ACH leads the way as a form of payment. Automatic payments have shown an increase in recent years with a significant majority of consumers across all generations now using the service. For bill payments made in a typical month, ACH is now the most common method used. Seventy-one percent report using some form of automatic or recurring payments. Use of automatic payments is similar across generations, Fiserv said.
As for specific forms of payments, ACH withdrawals from checking or savings accounts are increasing in frequency. In 2019, 69% reported using at least one ACH payment, up from 52% in 2018.