Transaction Trends

Americans want the best of both worlds when it comes to financial services, according to the “2018 Consumer Payment Study” from TSYS. Increasing numbers of U.S. consumers are trying out the latest payment technologies, but they still appreciate the personal touch of old-fashioned customer service when they encounter an issue, according to approximately 1,200 Americans with debit and credit cards who participated in the study.

The eighth annual survey found that consumers are increasingly using mobile payment options. This is especially true of younger consumers—82 percent of people aged 18-24 are familiar with in-app payments, and 27 percent of this group has loaded a debit card into a mobile wallet. Those numbers contrast sharply with the over-65 age group, in which only 41 percent are familiar with in-app payments and a mere 3 percent have loaded a debit card into a mobile wallet. Among all age groups, consumers most often use their mobile banking apps to view balances (93 percent) and check recent transactions (82 percent).

Meanwhile, peer-to-peer (P2P) payment growth continues to accelerate, according to the study, with the number of respondents who reported using P2P payments jumping from 29 percent last year to 44 percent in 2019. That growth may be due, in part, to increased awareness of these services, which rose to 81 percent—up 8 percent from last year.

Use of contactless cards remains low among American consumers: Fifty-five percent of consumers with a contactless card have used the “tap” feature to make a purchase.

Consumers also indicate a preference for managing their accounts digitally, with 40 percent saying they would prefer to receive text message alerts about potential unauthorized use. Nearly two-thirds of respondents (61 percent) would like to receive mobile alerts every time their card is used to make a purchase.

Although consumers are embracing the convenience of digital banking and payment technologies, the survey showed they still prefer to talk to a real person, via phone or in person, when they have a problem with a payment card. Among those surveyed, 72 percent of consumers would rather talk to a customer service representative over the phone to resolve an issue. And while younger consumers between the ages of 18 and 24 are the most active mobile users, they also are the most likely age group to seek customer support in person, with 16 percent saying they would visit a branch if they had a problem with their payment card.

This piece originally appeared in the Fall 2019 edition of Transaction Trends Magazine. Click here to view the issue.