Survey: In-app purchasing ability most desired for food & beverage, retail
Seamless payment options are becoming a bigger demand among consumers.
Among parents with children under 25 living at home, 72% say they would prefer to pay for everything through an app if they could, compared to 53% of consumers overall, according to a new survey from embedded payments infrastructure company NMI. Nearly two-thirds (64%) of Gen Z and millennials say they’ll take their business elsewhere if in-app payments aren’t an option.
Sixty-eight percent of those surveyed want to use in-app payments for food and beverage purchases, like restaurants, coffee shops, bars and delivery services. Retail lands in the number two spot, with 53% of consumers opting for in-app payments in this sector.
Entertainment and recreation (e.g., concerts, movie theaters, theme parks and sporting events) and transportation and travel (e.g., ride-sharing, public transit, parking, airfare and hotels) tie at number three, each drawing interest from 45% of consumers. Consumers also want to pay through apps in some unexpected sectors. On average, 37% of consumers are interested in using apps to pay for everyday services like car washes and dry cleaning, and 30% for home services such as landscaping and plumbing. Among parents, the interest in these sectors rises significantly to 49% and 42%, respectively.
The subscription model is especially popular among millennials (69%) and Gen Zers (66%), who prefer recurring payments for frequently used goods and services. There is also a rising preference for invisible transactions, as 64% of respondents embrace biometric authentication like Face ID or fingerprints, and 59% say the best transactions are the ones that feel like they never happened. Four-in-10 (43%) baby boomers are uncomfortable using biometric authentication, while 40% embrace it for its speed, security and convenience.
[READ MORE: Survey: In-store technology not keeping up with experience customers want]
“Younger generations are setting the pace when it comes to payment technology, and businesses that want to remain competitive need to keep up,” said Peter Galvin, chief growth officer at NMI. “Millennials, Gen Z and busy parents expect seamless, app-based and subscription-style payments that fit into their daily lives. And if businesses can’t meet those expectations, these customers are quick to shift their loyalty and move on. To succeed in this evolving landscape, brands must prioritize flexible, mobile-first solutions that cater to how younger audiences actually live, shop, and pay.”
In-app payments are set to play an even bigger role in business choice throughout 2025. Nearly six-in-10 (59%) consumers say it’s important that merchants offer app-based payments, and half (50%) would choose a business that does over one that doesn’t. Already, half of respondents use in-app payments weekly or more, and 55% expect to increase their usage this year.
Income level also plays a role among consumers earning less than $75K annually. Half (54%) use in-app payments only a few times a month or less, yet half (49%) say they’d pay for everything through an app if it was possible.
For its report, NMI surveyed 1,000 U.S. adults.
