It may surprise you to learn that a shift in preferred payment method occurred over the past year, where people of all ages are now reaching to pay with debit instead of credit – even for online purchases.
Welcome to part II of our blog series on Eye on Payments 2019. This annual payment study by PSCU examines the factors that influence consumers when it comes to their choice and usage of different payment methods.
In our first blog from our 2019 study, we revealed that convenience and ease of use are now the main drivers behind a consumer’s choice in payment method, toppling last year’s motivator of security. Today, we’re going to dive deeper into the reasons behind this newfound debit preference, and look at how younger generations, in particular, are using debit to assuage their fear of debt.
Consumers Choose and Trust Debit for Online Purchases
While ease of use (64%), convenience (62%) and comfort of use (51%) were some of the top reasons cited for this year’s debit preference, an overall increase in American debt, concerns about an upcoming recession and the budget-conscious qualities of today’s younger generations are all factors in this year’s shift. Additionally, advanced features in the way of mobile card alerts are helping give consumers more control over their debit activity, and lessening fears around fraud. Perhaps this is why PSCU saw the shift to debit begin to take place around major shopping events from the past 12 months, like the 2018 holiday season and 2019’s Amazon Prime Day.
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