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PSCU, the St. Petersburg, Fla.-based payments CUSO, released its sixth annual "Eye on Payments" study this week, which revealed, among other things, how mobile wallet use has climbed and how influential things like credit card designs are for what credit union members use to make payments.
The 39-page study found mobile wallets and contactless cards, across every generation, are becoming more and more appealing to consumers and members.
"This year, nearly four in 10 respondents (37%) report they choose to use a mobile wallet at the point of sale (POS) or when paying for something in a retail location, with at least 28% of respondents 42 and younger saying they use their mobile wallet a few times per week," according to PSCU. "In fact, mobile wallets rank as the third most preferred way to pay (13%) for Gen Z, more than doubling in preference since 2021 (6%) and surpassing cash (12%) for the first time."
The study indicated top-of-wallet decisions continued diverging between the oldest and youngest generations. The report found the following:
- 96% of baby boomers prefer to use tried-and-true payments such as debit/credit cards or cash;
- 49% of Gen Zers prefer debit card use and also lead the way with mobile wallet and person-to-person payment use (6%); and
- 80% of Gen Z respondents tend to pay with a variety of payment methods, compared to 42% of baby boomers.
Other key findings from the Eye on Payments report included:
- 93% of credit union members believe their financial institution is stable and say they trust their credit union.;
- 63% are more concerned about the safety and security of their money/savings than they were a year ago.;
- Of those who say their financial institution offers Buy Now, Pay Later (BNPL), 74% report having used it in 2023, up from 69% in 2022;
- Over half of consumers ages 42 and younger (older millennials, younger millennials and Generation Z) have used text, a QR code and/or a social media app to pay for goods and services or make a purchase;
- 39% of respondents agree that card design influences which card they choose to use; and
- 42% of credit union members have decided to use a credit (39%) or debit card (42%) based solely upon its rewards.
"The payments landscape is continuously evolving in response to the economic and geopolitical climate, new solutions, generational preferences and more, with these effects being felt by all players in the financial services space," Tom Pierce, chief marketing officer at PSCU, said. "Our aim with this annual study is to arm credit unions with the data, insights and resources they need to make informed business decisions and sustain growth, ranging from adopting innovation to leveraging established member trust and exploring emerging payments integrations, among others. Keeping products fresh, relevant and in tune with what consumers now demand is critical to retaining current member relationships and establishing new ones."
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
