Consumer payment preferences continue to shift toward digital alternatives as convenience, speed, and security become increasingly important factors in how people manage their finances. Recent survey findings reveal that consumers are not only reducing their reliance on cash and checks, but are also embracing emerging payment technologies at a faster pace than many industry observers expected. Particularly noteworthy is the growing interest in cryptocurrency ownership across multiple age groups, signaling that digital assets are becoming a more mainstream part of the payments conversation. As digital payment adoption accelerates, financial institutions, merchants, and payment providers must prepare for a future where traditional payment methods play a diminishing role in everyday commerce.
Obviously not a huge surprise as checks have been declining for a long time. More surprising is that the survey discovered that 46% of respondents either own, or plan to own, cryptocurrencies over the next 12 months and that 45% of 35–44-year-olds currently use cryptocurrencies:
“Key 2022 Future of Payments Survey findings illustrate Americans’ payment habits in the current consumer landscape and how they will continue into the future:
• 74 percent of consumers prefer to make payments using digital methods over traditional forms, including cash or paper check.
• 65 percent of consumers believe digital payments are the most secure as opposed to other forms of payments, including money order, cash or check.
• Nearly one third of respondents say they plan on using cash less frequently or not at all next year, while only 8 percent plan to use cash more.
• 37 percent of respondents in the 18-to-24 age group say they plan to use cash and check payment methods less often or not at all in 2022.
• 46 percent of all respondents own or plan to own cryptocurrencies within the next 12 months.
• 45 percent of 35–44-year-olds use bitcoin/cryptocurrency compared to just 17 percent of 45-64-year-olds.
To view the full Future of Payments Survey report, visit https://www.onbe.com/future-of-payments.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
