For more than a decade, the U.S. has been a laggard in the adoption of modern payment technology. Reliance on the magstripe years after peer economies had adopted chip-based payment cards, and the slow adoption of contactless-enabled “dual interface” payment cards, has ultimately hindered the initial growth of Apple Pay, Google Pay, and the like in the U.S. market.
However, the global COVID-19 pandemic revolutionized American consumers’ lives virtually overnight, and with it came a reset of the American perspective on in-person and online payments. Minimal contact and maximal speed are top of mind, and contactless cards and mobile payments quickly became top of wallet for millions of consumers across the country.
We sought to bring clarity to these trends through proprietary, third-party conducted research delving into the banking and payments preferences of 1,000 United States-based bank account holders.
What we discovered was an overwhelming preference for mobile-centric, yet fully integrated, experiences from account opening, to card issuance, to direct deposit, loan closure, and more. More than 90% saw ease of account opening as an important factor when choosing a bank or credit union. Nearly 7 out of 10 preferred to open the account on mobile. And 85% of consumers preferred a payment card that they could monitor, manage, and control from their banking mobile application.
Not surprisingly, given the findings above, we also saw a dramatic preference for both physical and digital payment methods, for in-person and e-commerce transactions, respectively.