Payment method statistics

By Jason Steele | Updated: July 28, 2017

Covers credit and payment statistics

See more credit card statistics

Americans have their choice of payment methods for most purchases, including credit cards, debit cards, cash, checks and newer forms of electronic payments, such as mobile wallets and wearables. As fresh forms of payment become popular, our preferred methods of payment have been switching.

What method of payment is the most popular?

The survey also found that debit cards were the preferred method of payment for smaller, everyday transactions at supermarkets, gas stations and convenience stores, while credit was the choice for more expensive purchases, including those at department stores and restaurants, and for travel reservations. 1

Preferred payment types varied by age, too. The TSYS survey found that people ages twenty five to forty four preferred credit cards, while the 18-24 crowd and the 45-54 crowd preferred debit. 1

Albeit mobile payment use leaped dramatically from previous years, only thirteen percent reported loading a credit card onto their mobile device in the last year. One

Why aren`t digital wallets catching on?

Mobile devices have permeated many aspects of our daily lives, but digital wallet use remains a petite factor in the overall payments picture.

Part of the reason could be on the retailer side, with only thirty six percent of merchants reporting that they presently accept digital wallet payments in a examine commissioned by JP Morgan Pursue. Two While fifty six percent of large businesses said they accept mobile wallets, only twenty five percent of puny businesses said they accept them. Two

Merchants are not the only slow adopters. In the same investigate, only sixteen percent of consumers said they had used a mobile wallet. Two

Some factors cited as hampering the adoption of digital wallets include fears about security and concerns that a merchant wouldn’t accept payments via digital wallets.

Digital security concerns switch purchase behavior

In the wake of many latest high-profile hacking cases, computer security has affected how consumers make purchases.

The two thousand seventeen American Express Digital Payments Survey shows that seventy three percent of consumers surveyed have made three or more online purchases in the twelve months prior to June 2017. However, thirty seven percent say they have abandoned an online purchase due to security concerns. Three

Nevertheless, almost half of online shoppers (47 percent) say they`ve enhanced the frequency of their online purchases over the last year, and seventy one percent of merchants say the proportion of their annual sales generated through online and mobile channels enhanced over the previous year. Three

However, the survey also shows that, security aside, plastic is still preferred – twenty percent of those surveyed are no longer carrying cash and forty six percent say that they infrequently or never use cash. Three

Frustration with chip cards may increase digital wallet usage

Since 2015, credit cards with embedded EMV chips have become the standard.

According to EMVCo, an international standards organization, which reports over 6.1 billion EMV chip cards in global circulation. EMV adoption rates in the U.S. rose to 52.Two percent in 2016, up from 26.Four percent in 2015. Four

However, many consumers aren`t excited about the enhanced security of chip cards.

Mobile payment processor Square found in a two thousand sixteen survey that thirty seven percent of respondents say that waiting in line was their top anguish point at stores, more than eighty seven percent of credit card users reported being frustrated that chip cards were slower to process than those with magnetic stripes. Ninety-one percent of debit card users voiced the same sentiment. Five

The payment process time has improved in 2017, however, thanks to Visa`s Quick Chip technology, which processes transactions in Two.Five seconds, and Mastercard`s M/Chip Quick, which is even quicker.

The trend toward using credit cards as a foot method of payment

In latest years, the percentage of people who use their credit cards as their foot payment method (rather than to finance purchases) has risen dramatically. More than half of all credit card holders use their cards for everyday spending.

According to the FINRA two thousand sixteen Investor Education Foundation’s National Financial Capability Examine, fifty two percent of respondents reported always paying their credit cards in total in 2015, signifying an increase of eleven percent compared to the same probe in 2009. 6

Person to person (P2P) electronic payment trends

Bank of America’s two thousand seventeen Trends in Consumer Mobility Report shows that P2P mobile payments are becoming mainstream, especially among junior Americans.

While only thirty six percent of total respondents said they used P2P payments, sixty two percent of millennials said they used them, and thirty four percent of Gen Xers. And among those who do not presently use P2P payments, almost half predicted they`d do so in 2017. 7

P2P payments are seen as «less annoying» than other forms of payment. For example, fifty one percent of respondents found paying via check to be a anguish, while thirty eight percent were annoyed by delayed checks or checks that are never cashed. 7

Of those who use P2P payments, sixty eight percent said the payment was convenient and saved time, and forty eight percent were motivated because friends were using it. 7

Early predictions of a quick budge to a cashless society have proved premature, but cash payments are still plummeting. According to the two thousand sixteen Federal Reserve Payments Explore, noncash payments enlargened at an annual rate of Five.Three percent (Three.Four percent in value), inbetween two thousand twelve and 2015. Debit, credit and ACH payments grew while check payments fell during this time period. 8

A two thousand sixteen Gallup poll also found that far fewer Americans are using cash than five years previously. Only ten percent reported using cash for all their purchases, down from nineteen percent in 2011. 9

But still, only twelve percent say they never use cash, hardly switched from the ten percent who said the same in 2011. 9

With almost ninety percent using cash at least sometimes, we are far from the cashless future once predicted.

How consumers are paying their bills

When you think of «preferred payment method,» you might only consider retail purchases, both in-store and online.

But consumers must also select a method of payment when paying bills.

Fiserv, an online bill payment provider, issued its 8th Annual Billing House Survey in 2016, which found that more than ninety percent of households used more than one payment method for paying bills. The average number of payment methods in two thousand fifteen was Trio.6, up from Two.9 in 2014. Ten

More than thirty three percent of those surveyed reported paying a monthly bill through their mobile phone, a twenty two percent increase over the previous year’s survey. Ten

However, by far the most popular payment method for bills is the biller`s website, followed by checks and financial institutions` websites. Ten

Users of iPhones were more likely to use mobile bill payment than Android users, by a margin of forty nine percent to thirty eight percent. Ten

Payment method statistics

Payment method statistics

By Jason Steele | Updated: July 28, 2017

Covers credit and payment statistics

See more credit card statistics

Americans have their choice of payment methods for most purchases, including credit cards, debit cards, cash, checks and newer forms of electronic payments, such as mobile wallets and wearables. As fresh forms of payment become popular, our preferred methods of payment have been switching.

What method of payment is the most popular?

The survey also found that debit cards were the preferred method of payment for smaller, everyday transactions at supermarkets, gas stations and convenience stores, while credit was the choice for more expensive purchases, including those at department stores and restaurants, and for travel reservations. 1

Preferred payment types varied by age, too. The TSYS survey found that people ages twenty five to forty four preferred credit cards, while the 18-24 crowd and the 45-54 crowd preferred debit. 1

Albeit mobile payment use leaped dramatically from previous years, only thirteen percent reported loading a credit card onto their mobile device in the last year. One

Why aren`t digital wallets catching on?

Mobile devices have permeated many aspects of our daily lives, but digital wallet use remains a puny factor in the overall payments picture.

Part of the reason could be on the retailer side, with only thirty six percent of merchants reporting that they presently accept digital wallet payments in a examine commissioned by JP Morgan Pursue. Two While fifty six percent of large businesses said they accept mobile wallets, only twenty five percent of puny businesses said they accept them. Two

Merchants are not the only slow adopters. In the same probe, only sixteen percent of consumers said they had used a mobile wallet. Two

Some factors cited as hampering the adoption of digital wallets include fears about security and concerns that a merchant wouldn’t accept payments via digital wallets.

Digital security concerns switch purchase behavior

In the wake of many latest high-profile hacking cases, computer security has affected how consumers make purchases.

The two thousand seventeen American Express Digital Payments Survey shows that seventy three percent of consumers surveyed have made three or more online purchases in the twelve months prior to June 2017. However, thirty seven percent say they have abandoned an online purchase due to security concerns. Three

Nevertheless, almost half of online shoppers (47 percent) say they`ve enhanced the frequency of their online purchases over the last year, and seventy one percent of merchants say the proportion of their annual sales generated through online and mobile channels enhanced over the previous year. Three

However, the survey also shows that, security aside, plastic is still preferred – twenty percent of those surveyed are no longer carrying cash and forty six percent say that they uncommonly or never use cash. Three

Frustration with chip cards may increase digital wallet usage

Since 2015, credit cards with embedded EMV chips have become the standard.

According to EMVCo, an international standards organization, which reports over 6.1 billion EMV chip cards in global circulation. EMV adoption rates in the U.S. rose to 52.Two percent in 2016, up from 26.Four percent in 2015. Four

However, many consumers aren`t excited about the enhanced security of chip cards.

Mobile payment processor Square found in a two thousand sixteen survey that thirty seven percent of respondents say that waiting in line was their top agony point at stores, more than eighty seven percent of credit card users reported being frustrated that chip cards were slower to process than those with magnetic stripes. Ninety-one percent of debit card users voiced the same sentiment. Five

The payment process time has improved in 2017, tho’, thanks to Visa`s Quick Chip technology, which processes transactions in Two.Five seconds, and Mastercard`s M/Chip Swift, which is even quicker.

The trend toward using credit cards as a foot method of payment

In latest years, the percentage of people who use their credit cards as their foot payment method (rather than to finance purchases) has risen dramatically. More than half of all credit card holders use their cards for everyday spending.

According to the FINRA two thousand sixteen Investor Education Foundation’s National Financial Capability Probe, fifty two percent of respondents reported always paying their credit cards in utter in 2015, indicating an increase of eleven percent compared to the same explore in 2009. 6

Person to person (P2P) electronic payment trends

Bank of America’s two thousand seventeen Trends in Consumer Mobility Report shows that P2P mobile payments are becoming mainstream, especially among junior Americans.

While only thirty six percent of total respondents said they used P2P payments, sixty two percent of millennials said they used them, and thirty four percent of Gen Xers. And among those who do not presently use P2P payments, almost half predicted they`d do so in 2017. 7

P2P payments are seen as «less annoying» than other forms of payment. For example, fifty one percent of respondents found paying via check to be a ache, while thirty eight percent were annoyed by delayed checks or checks that are never cashed. 7

Of those who use P2P payments, sixty eight percent said the payment was convenient and saved time, and forty eight percent were motivated because friends were using it. 7

Early predictions of a quick budge to a cashless society have proved premature, but cash payments are still plummeting. According to the two thousand sixteen Federal Reserve Payments Probe, noncash payments enlargened at an annual rate of Five.Trio percent (Trio.Four percent in value), inbetween two thousand twelve and 2015. Debit, credit and ACH payments grew while check payments fell during this time period. 8

A two thousand sixteen Gallup poll also found that far fewer Americans are using cash than five years previously. Only ten percent reported using cash for all their purchases, down from nineteen percent in 2011. 9

But still, only twelve percent say they never use cash, hardly switched from the ten percent who said the same in 2011. 9

With almost ninety percent using cash at least sometimes, we are far from the cashless future once predicted.

How consumers are paying their bills

When you think of «preferred payment method,» you might only consider retail purchases, both in-store and online.

But consumers must also select a method of payment when paying bills.

Fiserv, an online bill payment provider, issued its 8th Annual Billing House Survey in 2016, which found that more than ninety percent of households used more than one payment method for paying bills. The average number of payment methods in two thousand fifteen was Three.6, up from Two.9 in 2014. Ten

More than thirty three percent of those surveyed reported paying a monthly bill through their mobile phone, a twenty two percent increase over the previous year’s survey. Ten

However, by far the most popular payment method for bills is the biller`s website, followed by checks and financial institutions` websites. Ten

Users of iPhones were more likely to use mobile bill payment than Android users, by a margin of forty nine percent to thirty eight percent. Ten

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