New Marqeta Research: Americans Are Happy To Swap Physical Wallets for Mobile Phones, Contactless Payment Use Trails Key Global Markets
July 23 2024 - 8:00AM
Business Wire
- 46% of US respondents said they’ve used a form of contactless
payments in the last 7 days, compared to 80% in the UK and 69% in
Australia.
- Three out of five 18-34 year old US consumers surveyed said
they would get their financial services from a non-traditional
financial services provider, such as a tech company or
retailer.
- 90% of US consumers who get paid immediately said it makes it
easier to plan for finances and increases financial peace of
mind.
The US is seeing high demand for innovative new payment
solutions, reveals recent data from Marqeta (NASDAQ:MQ). Marqeta,
the global modern card issuing platform powering some of today’s
most innovative embedded finance solutions, today released its
fifth annual 2024 State of Payments Report, surveying 4,000
consumers across three continents. The research highlights the
massive market potential and demand in the US market, with a strong
desire for modern payment solutions and embedded finance offerings,
particularly among Gen Z and Millennials. This contrasted with
lower penetration of modern payment behaviors in the US, with US
contactless adoption rates and mobile banking lower than in the UK
and Australia. Forty-six percent of US respondents said they’ve
used a form of contactless payments in the last seven days,
compared to 80% in the UK and 69% in Australia, while 56% of
Americans surveyed said they’ve used their mobile banking app in
the last seven days, compared to 71% in the UK and 67% in
Australia.
Consumers Ditch Physical Wallets For Mobile Payments
Marqeta’s 2024 State of Payments Report dives into consumer
preferences for how they earn, spend and manage their money. The
data indicates that while US adoption amongst those surveyed is
lower than in the UK and Australia, there has still been
significant movement in consumer preferences from physical to
mobile solutions, including in banking and wallet use. Most global
consumers reported frequently interacting with their mobile banking
apps, with ATM use secondary and physical branch visits a distant
third. Twenty-nine percent of US consumers surveyed reported using
an ATM in the last seven days, compared to 36% in the UK and 30% in
Australia, with 21% visiting their physical branch, higher than
both the UK and Australia at 12% and 14% respectively. When it
comes to mobile wallet use, over half of US consumers surveyed have
at least one payment card in their mobile wallet and 53% of them
feel confident enough to leave their physical wallets at home, a
figure that rises to 67% among 18-25 year olds. Additionally, the
report suggests growing comfort with the idea of a cashless
society:
- 71% of all US consumers surveyed expressed they were neutral or
didn’t have any worries about moving to a cashless society
- Over a quarter of US 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.
- Almost one-third of US consumers surveyed (31%) reported using
cash less than they did 12 months ago, showing continued, steady
movement toward digital payments, following 2023 when 35% of
consumers said they decreased their cash use compared to the prior
year
Younger Generations Embrace Brands and Non-Traditional
Financial Providers
According to the report, non-traditional banking providers and
embedded finance offerings are primed to gain popularity among
consumers – 42% of US 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 US consumers 18-34 years old. The openness of younger
consumers is even more evident when consumers surveyed were asked
how they feel about brands starting to offer financial services,
with 66% of consumers ages 18-34 years old saying they feel
positive about this. Additionally, a significant 78% of US
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.
Instant Payouts Becoming Essential for Workers
Instant pay options are becoming an important concept for the
growing gig and shift economy, reveals Marqeta’s report. Almost a
quarter of US consumers surveyed consider themselves part of the
gig economy, with that number increasing to over a third for those
aged 18-34 years old. Of the US respondents who consider themselves
part of the gig economy, 87% said immediate pay would attract them
to use a gig work platform. While instant pay is yet to be an
employment necessity, it is becoming increasingly vital for those
who want peace of mind when managing their finances:
- 90% of US consumers surveyed who get paid immediately said it
makes it easier to plan for finances and provides financial peace
of mind.
- Of those who have to wait for their paychecks, 39% of US
consumers said they’re more likely to use credit to make ends meet,
rising to 44% for 18-34 year olds.
- 37% of all US consumers surveyed 18-34 years old said instant
pay is a necessary benefit from their employers, above the 25%
national average.
“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 US—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.”
Download the full report here.
About the research
The survey was performed on behalf of Marqeta by a third-party
advisory firm in the payments space in June 2024. Marqeta surveyed
4,000 consumers (2,000 in the United States, 1,000 in Australia,
1,000 in the UK) ages 18 and above.
About Marqeta (NASDAQ: MQ)
Marqeta’s modern card issuing platform empowers its customers to
create customized and innovative payment cards and embedded finance
offerings. Marqeta’s platform, powered by open APIs, gives its
customers the ability to build more configurable and flexible
payment experiences, accelerating product development and
democratizing access to card issuing technology. Its modern
architecture provides instant access to highly scalable,
cloud-based payment infrastructure that enables customers to launch
and manage their own card programs, issue cards and authorize and
settle transactions. Marqeta is headquartered in Oakland,
California and is certified to operate in more than 40 countries
globally. For more information, visit www.marqeta.com, Twitter and
LinkedIn.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements expressed or implied in this press release include, but
are not limited to, quotations and statements relating to changing
consumer preferences; increasing consumer adoption of certain
digital payment methods, products, and solutions; which payment,
banking, and financial services products and solutions may succeed;
technological and market trends; Marqeta’s business; Marqeta’s
products and services; and statements made by Marqeta’s senior
leadership. Actual results may differ materially from the
expectations contained in these statements due to risks and
uncertainties, including, but not limited to, the following: any
factors creating issues with changes in domestic and international
business, market, financial, political and legal conditions; and
those risks and uncertainties included in the “Risk Factors”
disclosed in Marqeta's Annual Report on Form 10-K, as may be
updated from time to time in Marqeta’s periodic filings with the
SEC, available at www.sec.gov and Marqeta’s website at
http://investors.marqeta.com. The forward-looking statements in
this press release are based on information available to Marqeta as
of the date hereof. Marqeta disclaims any obligation to update any
forward-looking statements, except as required by law.
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James Robinson press@marqeta.com
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