The Debit and P2P Landscapes Continue to Change with Consumer Behavior

Share Article

New report from Mercator Advisory Group’s 2020 North American PaymentsInsights survey finds U.S. consumers are altering the way they use debit cards and P2P payments to meet the shifting marketplace.

One of the exhibits in this report.

Mercator Advisory Group’s most recent consumer survey report, 2020 North American PaymentsInsights: Debit – Continued Change, from the bi-annual North American PaymentsInsights series, takes an in-depth look at U.S. consumers’ current attitudes and behaviors with regard to debit cards and P2P payments.

While the data from this survey indicate a decrease in the number of debit users, actual debit card volume is increasing in the pandemic era.

Nearly one-half of the consumers surveyed report they currently receive rewards on their debit cards. Many consumers who receive debit card rewards say it motivates them to spend more on these cards. However, while the primary rewards are cash back and/or points, the proportion of customers receiving these two rewards appears to be decreasing when compared with last year.

Debit card fraud is on the rise with one-quarter of debit card owners reporting fraud on their debit card. While this is on par with last year, it is much higher than the 17% reported in 2018.

The use of P2P payment apps continues to gain in popularity. In 2017, 57% of American adults reported using a P2P service. That has increased to 70% in 2020. The market is currently dominated by PayPal, but other P2P services, Venmo, Zelle, Google Pay and Square Cash, have all roughly doubled in reported usage since 2017.

This year, the average frequency of use of P2P services has decreased from 9.0 in 2019 to 8.0 transactions annually. This decline has likely been a result of the pandemic, as fewer people are socializing and thus have fewer opportunities to use P2P payments.

This report explores how technology and fraud impact consumers lives and, in particular, the way they shop and pay for things. This includes detail on not only what they do, but also how they feel about these two important consumer issues.

“This report reveals how consumers use of debit cards and P2P payments have changed over the past year. It goes without saying that they pandemic has materially changed consumer payment behavior, but this report explores changes that are pandemic related, as well as those shifts in behavior that started before the pandemic,” stated the author of the report, Peter Reville, director of Primary Research Services at Mercator Advisory Group, which includes the North American PaymentsInsights series.

Highlights of this report include:

  • Debit Card Use
  • Online Debit Card Use
  • Debit Card Rewards
  • Use of New Payment Technology
  • Debit Card Controls
  • Debit Card Fraud
  • Banking & Payments Overview
  • P2P Services

This report in slide form is 52 pages long.

Companies mentioned in the survey results shown include: Apple Pay Cash, Facebook Messenger, Google Pay, MoneyGram, PayPal, PeoplePay, PopMoney, Square Cash App or Cash App, Venmo, Western Union (WU) Pay, Zelle

Members of Mercator Advisory Group’s North American PaymentsInsights Survey Series Service (formerly CustomerMonitor Survey Series Service) have access to this report as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.

Please visit us online at http://www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700 or send email to media@mercatoradvisorgroup.com.

For free industry news, opinions, research, company information, and more, visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Karen Yetter
@MercatorAdvisor
Follow >
Visit website