Digital Wallets Dominate Surge in New Payments Use

Fifty-nine percent of consumers who tried a new payment method in the past year used digital wallets, making them the most popular new payment method. The willingness of consumers to try all manner of payment methods in the past year was clearest among Generation Z consumers and millennials.

The data shows that the growth in new payment methods is greatest among younger consumers, who are becoming an indispensable customer segment for financial service companies, FinTechs and merchants.

In “New Payment Options: Why Consumers Are Trying Digital Wallets,” a PYMNTS and Nuvei collaboration, we surveyed United States consumers to determine their willingness to try new payment methods, such as online bank transfers enabled through digital wallets.

Key finding from the playbook include:

• 79%: The share of Generation Z consumers who tried a new payment method in the past 12 months, the most of any of the age groups in our survey. The high number demonstrates the willingness of younger consumers to try new payment methods.

• 28%: The portion of consumers who say ease of use is the most important factor in their decision to try a new payment method. This underscores the need for financial services firms, FinTechs and merchants to ensure that payment methods enhance consumers’ convenience and do not detract from it.

• 29%: The share of baby boomers and seniors who tried new payment methods in the past year, the lowest of any of the age groups tracked. This suggests that the adoption of new payment methods throughout the economy is driven by younger consumers.

Consumers have long been interested in trying new payment methods, so long as they are easy to use.

To learn more about how consumers’ willingness to try new payment products is leading them to use online bank transfers enabled through digital wallets, download the playbook.