U.S. Bank survey of consumers finds 47 percent prefer digital payment
options
MINNEAPOLIS--(BUSINESS WIRE)--Aug. 16, 2017--
With increased access to person-to-person (P2P) payment services,
consumers across generational lines report they prefer to use mobile
applications when paying other people as opposed to cash.
According to the recent U.S. Bank Cash Behavior Survey, 47 percent of
consumers surveyed say they prefer the use of digital apps to make
payments versus cash (45 percent). Breaking the results down by
generations, 49 percent of millennials (aged 19-36), 44 percent of
Generation X (aged 37-52), and 32 percent of baby boomers (aged 53-71)
have made digital payments. That number is expected to grow with Zelle,
a new P2P payments network that offers a fast, safe and easy alternative
to checks and cash, says Gareth Gaston, executive vice president of
Omnichannel at U.S. Bank.
“The incredible consumer response to digital and mobile banking
solutions is changing the entire industry and diminishing the historic
use of cash,” he said. “ATM withdrawals and branch visits are slowly
declining, while mobile transactions are increasing dramatically year
over year. In just the 30-day period since Zelle launched within
the U.S. Bank Mobile App, the number of P2P payments sent by our
customers have increased by more than 300 percent. It shows that the
broad availability of free, easy-to-use and fast-acting technology is
supplanting the need for cash.”
Carrying Less Cash
The U.S. Bank Cash Behavior Survey also found that consumers aren’t
carrying much cash with them or using it for payments on a frequent
basis. Overall, 50 percent of survey respondents reported carrying cash
less than half of the time.
When they do carry cash, nearly half of consumers surveyed keep less
than $20 on hand, and 76 percent keep less than $50. The instances where
they spend this cash appear to be shrinking as well, with 46 percent
claiming they use cash fewer than eight days each month, and 5 percent
saying they never use it.
Addressing Consumer Concerns
Despite consumer preference for digital payments, only 43 percent of
survey respondents reported making a P2P payment prior to the launch of Zelle.
When asked about the obstacles to initial or more frequent P2P mobile
payment use, consumers surveyed ranked security and fees at the top of
their list, followed by immediate access to funds, risk and convenience.
Unlike the mobile payment systems offered by non-bank providers, Zelle,
which is backed by U.S. Bank and other financial institutions, can
directly address these issues.
“On top of secure in-app access, Zelle payments are sent and
received directly between bank accounts and use a registered email
address or mobile number—this avoids the introduction of a third party
and vulnerability of account information,” Gaston explains. “It’s also
important to note that every Zelle payment made by a U.S. Bank
customer is protected by our U.S.
Bank Online Risk-Free Guarantee. Together, these security measures
make Zelle a much safer platform for consumers.”
In addition, money sent using Zelle is typically reflected in
account balances within minutes when both the sender and recipient are
registered. Users can send and receive money between consumer accounts
at Zelle’s partner banks, which allows accessibility to the
majority of the U.S. banking population.
Additional Findings
The U.S. Bank Cash Behavior Survey uncovered a number of additional
insights:
-
Forty-eight percent of men surveyed have used P2P apps in the last six
months versus 38 percent of women.
-
When using cash, consumers participating in the survey prefer to spend
it on dining (36 percent), travel/transportation (15 percent), parties
(14 percent), and family functions (14 percent).
-
When using P2P digital payment networks, consumers surveyed prefer to
pay for bills (51 percent), items from another person (40 percent),
gifts (35 percent), and concerts (8 percent).
-
Seventy-three percent of previous P2P users participating in the
survey reported being more likely to use a P2P service if payments are
secure and backed by a bank, and 78 percent reported they are more
likely to use a P2P service if they can access funds almost
immediately.
Bovitz, Inc. (an independent market research company) conducted the U.S.
Bank Cash Behavior Survey, a nationally representative online survey on
behalf of U.S. Bank, between June 1, 2017, and June 7, 2017. Bovitz
surveyed 2,003 participants throughout the United States, comprised of
adults ages 19-71 with a current banking relationship (checking or
savings), and who own a smartphone. Additionally, 25 percent of survey
respondents must have used a P2P payment app in the past six months.
About ZELLE
Brought to you by Early Warning, an innovator in payment and risk
management solutions, Zelle makes it easy, fast and safe for money to
move. The Zelle Network connects the nation’s leading financial
institutions, enabling customers to send faster person-to-person
payments to nearly anyone with a U.S. bank account. Funds are available
directly to consumer bank accounts, generally within minutes. To learn
more about Zelle and its participating financial institutions visit www.zellepay.com.
About U.S. Bank
U.S. Bancorp (NYSE: USB), with $464 billion in assets as of June 30,
2017, is the parent company of U.S. Bank National Association, the fifth
largest commercial bank in the United States. The company operates 3,088
banking offices in 25 states and 4,826 ATMs and provides a comprehensive
line of banking, investment, mortgage, trust and payment services
products to consumers, businesses and institutions. Visit U.S. Bancorp
on the web at www.usbank.com.
Zelle and the Zelle related marks and logos are property of Early
Warning Services, LLC.
Deposit products offered by U.S. Bank National Association. Member FDIC.
Credit products offered by U.S. Bank National Association and subject to
normal credit approval.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170816005688/en/
Source: U.S. Bank
U.S. Bank
Michael Walsh, 612-303-9122
Vice President of
Corporate Communications
michael.walsh@usbank.com