Consumers demand personalized payments experience
PSCU’s fourth annual Eye on Payments study focuses on evolving payment preferences
ST. PETERSBURG, FL (October 26, 2021) — PSCU has announced the release of its 2021 Eye on Payments study, which gauges payment preferences among credit union members and other financial institution customers (“non-members”), including how they have changed over the past 12 months. Among the key findings in the fourth annual report, the study revealed a growing demand for a personalized payments experience from consumers across the country. Nearly eight out of 10 survey respondents agree or completely agree that they want to do business with a financial institution that knows them personally.
“Tech giants like Amazon, Netflix and Spotify, among others, have introduced extreme personalization to consumers when shopping online, ordering groceries, watching TV or listening to their favorite podcast – so it should come as no surprise that this type of customization is now expected from consumers’ financial partners,” said Tom Pierce, chief marketing officer at PSCU. “Respondents to this year’s survey also indicated they are turning to mobile wallets, digital payments and contactless cards more and more, which aligns with trends we started to see take shape in 2020 and have continued to track through our monthly PSCU Payments Index.”
In addition, for the third year in a row, debit remains the most preferred payment method for all respondents, with 43% preferring debit and 33% preferring credit. Consumers are also indicating strong interest in emerging payments and offerings like cryptocurrency and installment payments, or Buy Now, Pay Later (BNPL).
Other key findings from the study include:
- Ninety-one percent of credit union members believe credit unions are good places to get advice and guidance on financial matters.
- Contactless card usage continues to grow significantly, with the number of respondents that reported having a contactless card increasing by 124% – up from just 25% in 2019 to 56% in 2021.
- Respondents who reported using a mobile wallet in the past 60 days have increased 50% from 2019 (14%) to 2021 (21%), with 30% of those reporting they use a mobile wallet at least a few times per month.
- Fifty-seven percent of all respondents report using digital payment methods such as Venmo, Zelle, Apple Pay or another payment app at least periodically, as opposed to 49% in 2020 and 42% in 2019.
- Ninety-one percent of all respondents shop online at least a few times per month, and nearly one in three shops online at least once a week or more.
- When asked whether they are worried about the economy as a result of COVID-19, 78% of all respondents said they agreed or completely agreed that they are.
- One in three overall respondents report they would be interested in learning more about cryptocurrency.
- Of those respondent that know their financial institution offers installment payments or BNPL, 61% report they have used these programs.
In addition to taking a more in-depth look at these key findings, the study also analyzes how and why payment method preferences differ among generations, as well as key takeaways credit unions can implement to better fulfill member payment preferences and needs in these key opportunity areas. For the first time, this year’s study includes a deep dive into select states to better ascertain payment preferences in various parts of the country.
PSCU surveyed more than 1,750 credit union members and non-members from across the U.S. The online survey, conducted in July 2021, was taken by participants ages 18 to 65+. Of those surveyed, 50% were male and 50% were female, and demographic characteristics of those surveyed align with consumer data from CUNA’s Member Profile.
The 2021 Eye on Payments white paper is available for download on the PSCU website.
About PSCU
PSCU/Co-op Solutions is the nation’s premier payments credit union service organization (CUSO) and an integrated financial technology solutions provider. With over four decades of industry experience and a commitment to service excellence and innovation, the company serves more than 4,000 financial institutions throughout North America. PSCU/Co-op Solutions leverages its expertise and resources on behalf of credit unions and their members, offering an end-to-end product portfolio that includes payment processing, fraud and risk management, data and analytics, digital banking, instant payments, strategic consulting, collections, ATM and POS networks, shared branching and 24/7/365 member support via its contact centers. For more information, visit pscu.com and coop.org.
