US, Canada consumers prefer online banking payment method

The study 10 Mega Trends Driving the Future of Payments, based on a survey of 1,500 consumers in the US and Canada, identifies consumers banking and payments behaviors, their appetite for next-generation payments products and experiences, and the trends most likely to drive significant change in the payments industry in the near- and long-term.

The study also found that the Gen Z consumers (69%) of this group prefer to bank via a mobile app. Gen Z consumers are also more likely than any other age group, including Baby Boomers, to visit one bank branch at least weekly.

One in five consumers (20%) visit their bank branch at least weekly, with nearly one-quarter (23%) of Gen Z — more than any other age cohort — accessing banking services through a branch at least weekly, compared with only 16% of Baby Boomers. Generation Z is also the most likely to use cash when making an in-store purchase, with 28% preferring cash, compared to only 18% of millennials.

The survey also found payments use remained consistent during the past three years, aside from an increase in debit cards and mobile wallet apps aligned to retailers, such as Starbucks.

Nearly two-thirds (63%) of consumers said they use a debit card for payment at least weekly, up from 53% in 2014 — and closing the gap with cash, the most frequently used payment method, which remained flat from 2014, at 66%. Mobile wallet use for retailer apps increased 4 percentage points over 2016, from 16% in 2016 to 20% in 2017.

All other mobile wallet app use remained at around 14%, with no distinct preference between types of wallets — whether provided by credit card companies, tech giants or traditional banks.