80% of Millennials Use Mobile Wallets to Pay Bills

Mobile wallet bill pay offers convenience and speed, however mobile wallet providers need to address concerns about security and frictions to win over holdouts.

Just as bills have primarily moved from mailed paper to digital, bill pay has become more digital, fueled by consumers’ adoption of mobile wallets. PYMNTS’ research found that 95% of mobile wallet users know the bill pay features mobile wallets offer, and nearly one-quarter of consumers pay bills with mobile wallets at least weekly. 58%: Share of bill pay users surveyed in Q1 2023 who say they experienced issues when using mobile wallets to pay their billsAs a result of the speed and convenience of the method, there has been a 22% increase in consumers’ use of mobile wallets for bill pay compared to six months ago.

With such high levels of awareness, however, it may be underwhelming that just 60% of consumers paid bills this way in the last year. PYMNTS researchers found that the process is hardly foolproof, as 71% of consumers who used mobile wallets frequently reported at least one issue when making bill payments. Many consumers said they do not perceive mobile wallets as secure enough to earn their trust. More than one-third of consumers not interested in mobile wallet bill pay blame security concerns for their disinterest.

These are a few of the facts PYMNTS’ research uncovered. “Digital Bill Payments: Mobile Wallets Gain Popularity, but Hurdles Remain,” a collaboration with ACI Worldwide, details consumers’ experiences with mobile wallet bill pay, including their preferences and frustrations as well as what they hope to see next when it comes time to pay their bills. We surveyed 2,120 United States consumers between March 2 and 7 to better understand their experiences with mobile wallet bill payments.23%: Portion of consumers who have used mobile wallets to pay their bills at least weekly over the last year

Key findings from our research include the following.

More consumers rely on mobile wallets for bill pay to manage their transactions and make payments quickly.

PYMNTS’ data found that 60% of consumers paid bills using a mobile wallet in the last 12 months. Among more affluent consumers, who tend to be early adopters, bill pay via mobile wallet increased from 55% to 68% during the same period. Millennials, who tend to be comfortable using newer technologies, are the most responsible for pushing mobile wallet bill pay use into the mainstream.

Consumers like the speed and convenience of mobile wallet bill pay, especially the ability to make instant payments when bills are due.

Consumers are generally very concerned about making bill payments quickly, making this a major source of interest in mobile wallets. Thirty-nine percent of consumers said that the ability to make payments instantly is an important reason for paying bills using a mobile wallet.39%: Share of consumers who say the ability to make payments instantly is an important reason to pay via mobile wallet

Mobile wallet providers offering strong bill pay security features can appeal to consumers wary of using mobile wallets for paying bills.

Forty-two percent of consumers not interested in using mobile wallets to pay bills cite security concerns as the main reason for their lack of interest. These security-conscious consumers present an opportunity for mobile wallet providers to focus on security.

Moves by providers have already cut prior complaints about processing speed in half. The gains could be tremendous if mobile wallet providers can solve the security equation and convert these consumers. Download the report to learn more about the present and future of mobile wallet bill pay.