Survey: Contactless, cashless payments on the rise
Americans are lagging behind consumers in other countries when it comes to contactless payments, although usage is increasing.
Nearly half (46%) of U.S. respondents said they’ve used a form of contactless payments in the last seven days, compared to 80% in the U.K. and 69% in Australia, according to payment card platform Marqeta’s fifth annual 2024 State of Payments Report, which surveyed 4,000 consumers across three continents. While more than half (56%) of Americans surveyed said they’ve used their mobile banking app in the last seven days, 71% of U.K. consumers and 67% of those in Australia said the same.
Almost one-third of U.S. consumers surveyed (31%) reported using cash less than they did 12 months ago, a sign of steady movement toward digital payments following 2023 when 35% of consumers said they decreased their cash use compared to the prior year. Over a quarter of U.S. respondents (28%) now feel “awkward” when paying with cash, a sentiment that is particularly strong among consumers 18-34 years old, with 49% of respondents saying they felt awkward.
[READ MORE: Survey: Digital payment preference growing among consumers]
According to the report, non-traditional banking providers and embedded finance offerings are gaining popularity among consumers. Forty-two percent of U.S. consumers surveyed said they would get financial services from a non-traditional provider, including a social media platform, retailer or tech brand, increasing to 63% among U.S. consumers 18-34 years old.
Two-thirds (66%) of consumers ages 18-34 years old say they feel positive about this about brands offering financial services. Additionally, a significant 78% of U.S. consumers surveyed use at least one additional financial provider outside of their primary traditional bank, demonstrating consumer openness to non-traditional providers and digital banks.
“The economic landscape is shifting as younger generations enter the shift and gig workforce more frequently, fueling demand for dynamic financial solutions," said Todd Pollak, Marqeta's chief revenue officer. "We're entering an era where the largest demographic in the U.S. – those 18-34 years old – are seeking fundamental changes in how they manage their finances and get paid, challenging banking and financial providers to innovate and meet these new expectations.”
