The rising popularity of digital payment networks has paved the way for massive improvements in disbursements from businesses for consumers. In fact, because speed, convenience, and choice are such empowering forces for consumers, many companies find themselves playing “catch up” to bring payments in line with the expectations of highly demanding prospects and customers.
To stress-test some of the common assumptions about consumer payment preferences, Sipree conducted a survey of more than 10,000 people across the US. Our questions focused on a scenario of payments between a large business and the consumer at three levels — $10, $100, and $1,000. Funds could be received via digital or traditional (check) methods, and below is what we discovered:
Key Learnings and Highlights:
Digital payments are clearly the most popular method to receive funds amongst consumers between the ages of 18-54. With the three payment levels we featured in our survey, digital payments were preferred by as much as 70%, a dramatic shift in attitude towards faster, more efficient, and direct payment methods.
PayPal and Amazon are hugely popular amongst all ages (Amazon especially for lower value payments).
Younger audiences prefer digital payment options, with more than 75% of 18-34-year-olds wanting immediate receipt of monies.
Trust for cash and checks is dwindling. In 1:1 follow-up interviews with select responders, belief in traditional payments is on the decline. Some participants named security and fraud as concerns, others reflected on time and speed of delivery as problematic for checks in particular.