According to a recent survey conducted by banking platform provider Temenos, a significant 58% of US consumers believe that all payments will soon be made digitally. This number increases to 67% when looking specifically at the younger demographic, known as Millennials.
The survey, which involved 2000 adults, focused on the growing trend of paying through digital services such as Apple Pay. It revealed that 71% of respondents use online banking to make payments, with 36% specifically opting for digital transactions like ACH transfers and wire transfers.
Furthermore, the survey found that 53% of respondents use payment apps like Venmo or PayPal, while 41% prefer to use either Apple Pay or Google Pay. Astonishingly, 24% of respondents claimed to never use cash at all, highlighting the increasing popularity of digital payment methods.
Interestingly, only a small fraction of respondents, a mere 16%, reported making payments with cryptocurrencies. This suggests that, while digital payments are becoming more common, cryptocurrencies have yet to gain widespread acceptance.
Temenos predicts that the adoption of digital payments will continue to rise, especially with the recent introduction of FedNow. FedNow is an instant transfer service provided by the US Federal Reserve, and while it is primarily used by banks, it can also be made available to the customers they serve.
The survey also revealed that one-third of US consumers find the existing transfer services to be too slow and expensive. However, even as consumers express dissatisfaction with these aspects, their main concerns when it comes to digital payments are fraud and privacy.
Interestingly, the survey found that both Gen Z (18 to 25-year-olds) and Millennials (26 to 41-year-olds) feel the most dissatisfied with the speed and cost of traditional bank transfers.
Patrick Gauthier, the CEO of Convera, a payments provider, sees the transition towards a cashless society as an ongoing global trend. He believes that this shift is fueled by consumer demand and expects it to continue in the foreseeable future.
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