Consumer trends in digital payments

According to McKinsey’s 2022 Digital Payments Consumer Survey, nearly nine in 10 Americans are using some form of digital payments, with usage of in-app and peer-to-peer purchases seeing the greatest growth. The survey also revealed that more than two-thirds of Americans expect to have a digital wallet within the next two years and 30% of consumers plan to use three or more digital wallets. Banks are considered the most logical providers of digital wallets by consumers, but in reality, digital wallets from PayPal, Apple Pay, and Google Pay are more widely used. These findings provide insights for payment providers looking to establish or extend retail relationships.

Despite mobile wallet popularity, Americans still prefer plastic

Mobile wallet usage is growing among Americans, but a rising percentage of customers still find it easier to use a physical credit/debit card than a mobile wallet, according to J.D. Power data. Despite security concerns being one of the historical barriers to the widespread adoption of mobile wallets, customers are becoming more satisfied with the simplicity of using a card. In 2022, 49% of Americans said that they used a mobile wallet in the previous three months, up from 38% in 2021. However, the percentage of customers who said they do not use mobile wallets because it is less convenient than a card increased to 49% from 47%. This rise is attributed to the emergence of contactless cards, which accounted for 28% of Visa’s U.S. transactions in October 2022, up from 20% in January 2022.