New Data On What Consumers Use To Pay

The latest research from prepaid and payments global company Blackhawk Network shows that consumers are using a variety of payment methods, from traditional cash and card-based payments tools to newer digital and mobile solutions.

Blackhawk Network announced yesterday (July 28) that, based on its shopper study, 2015 is the “Year of Traditional, Digital and Mobile Convergence in Payments.”

“Consumers still have a strong preference for traditional payment methods like debit cards and prepaid cards. Those payments tools are not going away anytime soon, even as interest in and usage of new payment methods grows,” Teri Llach, chief marketing officer at Blackhawk Network, said in a company release.

“Our findings prove that payments is not either/or when it comes to legacy payments versus emerging products; it’s really about convenience and providing a mix of options,” Llach added.

By surveying more than 1,000 American adults, the study, titled “How America Pays in 2015: Traditional, Digital and Mobile Convergence in Payments,” examined how consumers pay, if they believe payment tools are safe and what their preferences are for traditional and developing payment choices.

According to the study, cash, checks and cards still remain the most popular payment option amongst survey respondents.

But digital payment tools are quickly closing the gap, with 62 percent of those surveyed stating they used PayPal as a payment method over the last year.

While the use of new payment methods continues to grow, Blackhawk’s research showed the usage of cash and checks is on the decline. Compared to last year, 68 percent of mobile payment users surveyed reported using alternative payment methods, with cash and checks showing the largest dip overall.

The study also supported the popularity of gift cards amongst consumers, with the study’s results showing 87 percent of consumers believed merchant-branded gift cards are convenient, which is even higher than the 82 percent who said they found bank-connected debit cards easiest to use.

Other key findings of the study included:

• 25 percent of smartphone owners surveyed now use mobile wallets
• 93 percent said cash was the most convenient payment method
• 64 percent of mobile wallet users have debits cards in their wallets
• 18 percent of consumers report using alternative payment methods, such as Apple Pay, Samsung Pay, wearables or bitcoin

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To check out what else is HOT in the world of payments, click here.

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