An increasing number of consumers are using mobile payment apps and owning cryptocurrency. According to a new survey, adoption and usage of mobile payment apps are growing. Only 14% of respondents reported not having used a mobile payment app in the past year. PayPal was the most popular payment app, with 72% of respondents saying they had used it in the last year, compared to Cash App (32%), Venmo (26%), Google Pay (21%), Zelle (20%), and Apple Pay (19%). The study also examined trends in cryptocurrency, finding that more than one-third of respondents between the ages of 18-54 own cryptocurrency, with people ages 18-34 most likely to own it (37%), and individuals 35-54 (33%) trailing only slightly. Furthermore, 67% of those who own cryptocurrency are willing to consider using it for purchases if it were linked to a mobile wallet.
Contactless Payments Gain on Credit Cards
Credit cards may be consumers preferred way to pay, but contactless methods are waiting in the wings. A new study shows that while 42% of people surveyed said they preferred making transactions by credit card, 36% said they preferred contactless options. These preferences and causing retailers to change the payment options they offer, with more than three-quarters of merchants saying they offer contactless payments. Mobile wallets were the most common offerings (63%), followed by touchless card payments (44%) and QR codes (25%). The report also found that consumers are making 37% of their monthly purchases online. That’s reflected in what retailers are seeing, as they report they now get 58% of their total sales through online channels.
CFPB Suggests Credit Card Giants May Not Be Playing Fair
The Consumer Financial Protection Bureau is looking at whether the largest credit card issuers are engaged in unfair or anti-competitive practices given that eight companies control 70% of the market. The CFPB said in a blog post Wednesday that it is looking at ways to make it simpler for consumers to compare, switch or refinance credit cards. Consumers paid roughly $120 billion a year in interest and fees on credit cards from 2018 to 2020, or roughly $1,000 a year per household, the CFPB said.
