BROOKFIELD, Wis.—Consumers have adjusted their financial behaviors and preferences during the COVID-19 pandemic, and for many the changes to their payment habits will be permanent, a new study suggests.
According to Fiserv, its Expectations & Experiences survey found in May that with “many still under or having recently emerged from stay-at-home orders, significant percentages of consumers reported increased use of mobile payment apps, mobile check deposits and person-to-person payments, along with decreased use of cash.”
Fiserv said it found the majority of people indicated they expected those changes to stick. In its newest research, the company said it found among current users who increased their use of mobile payment apps, 67% expected the increase to be permanent, and 66% of mobile check deposit users said the same.
“Those expectations are holding true as people resume daily activities. The August 2020 survey shows that since March, 27% of current users have increased their use of mobile payment app—compared to 33% who said the same in May—and 25% have increased use of mobile check deposits,. compared to 27% in May,” Fiserv reported. “Among P2P users, 24% indicated increased use of non-bank P2P payments in August, compared to 28% in May, and 21% indicated increased use of financial organization P2P, the same number as in May.”
Among those who use cash, 36% have decreased its use since the pandemic began, similar to last quarter when 38% said the same.
Contactless Payments Gain Ground
In addition, Fiserv said interest in using tap-and-pay debit and credit cards has grown significantly in the last year – from 38% in 2019 to 58% in 2020. In addition, 43% currently say they’ve used either a tap-and-pay card or a tap-and-pay mobile wallet.
The May 2020 survey found 37% of consumers perceive tap-and-pay cards to be the fastest payment method and 42% believe it is the safest to prevent spread of COVID-19.
Worries Among Young Consumers
Meanwhile, “from their own finances to the state of the U.S. economy, financial concerns are pressing for many people,” Fiserv said.
For example, 66% are somewhat or very concerned about their personal finances, while only 12% say they aren’t worried at all. And 90% of people are worried about the U.S. economy, the study shows.
Nearly one-fifth of consumers (19%) have missed a rent, mortgage or bill payment as a result of the pandemic. Younger consumers are hit harder with 29% of Gen Z and Millennials and 25% of Gen X saying they’ve missed those payments, according to Fiserv.
About the Survey
Fiserv said the Expectations & Experiences consumer trends survey is one of the longest running surveys of its kind and builds on years of consumer survey data to provide insight into consumer financial behaviors and attitudes.
The latest survey was conducted by The Harris Poll among more than 3,000 consumers 18 and older in August and September 2020. Several findings were compared to those from a May 2020 survey. Additional information can be found at fisv.co/ExpectationsExperiencesCOVID19.