2024 Buyer PaymentsInsights: U.S.: Significant Consumer Buying Habits

The past 10 years has been the “Fintech Decade.” Spurred by low interest rates and technology companies expanding into financial services with a growth-first mindset, consumers have been presented with a myriad of new choices in payment methods. But have consumer behaviors changed that much? 

While new payment modes such as mobile payments and digital commerce have certainly been adopted, and that adoption continues to grow, this year’s Buyer PaymentsInsights survey shows how consumer payment behaviors have remained relatively consistent across categories like income, age, and household size. For financial institutions, payment services providers, and card issuing banks, the message is clear: the models they have built their payment business strategies on for generations still apply. Income, age and education continue to correlate to preferences in payment methods and can help guide strategies for credit card usage and the interest and interchange revenue those cards generate. 

Additionally, the payment preferences across all ages play out in both predictable and surprising ways. Older respondents (ages 55+) overwhelmingly choose to shop in-store across every shopping category and still prefer both paper and electronic checks more than any other age group. But surprisingly, 76% of this group use a credit or debit card to earn points or rewards—15 percentage points higher than both younger age brackets, respectively. Younger consumers are generally more likely to use alternative checkout methods in-store. Express checkout lanes were the lone exception. Older generations have more purchasing power than younger age groups and are more likely to leverage it through higher dollar value rewards programs, such as airlines/travel.

Highlights of the research report include: 

• Leveraging Purchase Power 
• Preferred Payment Methods 
• Reward/Loyalty Programs 
• Primary Shopping Channels 
• Alternative Checkout Options and Payment Methods 
• Shopping Experiences – Opinions and Expectations