Consumers in the US, particularly those in the younger age group, are increasingly favouring emerging payment services such as digital wallets and peer-to-peer (P2P) payment, according to the TSYS U.S. Consumer Payment Study.
More than one fourth (26%) of the respondents said they own an artificial intelligence-powered (AI) personal assistant, of which 60% were found to use the device for making purchases.
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In case of customers aged between 25 and 44 years, 76% used the device for making payments.
Security was found to be the key concern for those avoiding AI purchases, with the fear more pronounced in older Americans than their younger counterparts.
The study also found the number of consumers making in-store purchases with smart phones increasing from 7% in 2015 to 12% in 2017. Mobile wallet was favoured over payment card for store checkout by 51% of respondents.
Also, 68% of the respondents who loaded a debit or credit card to a mobile wallet said they plan to make 50% or more purchases in stores through a digital wallet in two years.
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By GlobalDataTwenty nine percent of the respondents said they used a P2P payment service such as PayPal, Venmo or Zelle, with the figure increasing to 45% in case of respondents aged between 25 and 34 years.
Moreover, consumers’ usage of banking apps was found to rise from 46% in 2015 to 63% in 2017.
The study also unveiled consumers’ faith in traditional payment methods, with 44% preferring to pay in debit, 33% in credit, and 12% in cash.
TSYS executive vice president and chief customer officer of issuer solutions Allen Pettis said: “Our latest study confirms that consumers are ready for change and adapting to the ever-evolving payments industry as new solutions are introduced. Because of this, retailers and payments providers can continue reimagining the digital purchase experience for consumers.”
