Mobile payment apps are entering the mainstream as consumers seek to make transactions safer and more convenient during the pandemic. As mobile payment apps continue to rise in popularity, tech companies, payments technology brands, banks, retailers, and more are all looking for ways to corner their share of this growing market. This week we surveyed our audience to learn which mobile payment apps they’re using most often, how often they’re doing so, and what they value most in these services. From Cash App to PayPal, the apps discussed in this survey span the three major mobile payment categories: peer to peer payments (P2P), mobile commerce, and mobile proximity payments.
The Rise of Mobile Payment Apps
November 19, 2020
Do you use any form of mobile payment?
of Americans use mobile payment apps.
Millennials are most likely to use mobile payment apps.
Which mobile payment apps do you use most frequently?
In terms of popularity, Cash App (42%) and PayPal (41%) have a significant lead over other mobile payment apps.
Older generations are more likely to use PayPal and Zelle, while younger generations are more likely to use Cash App and Venmo.
How does your current mobile payment behavior compare to this time last year?
33% of Americans are using mobile payment apps more frequently now vs. this time last year.
Younger generations are more likely to have increased their mobile payment behavior, with millennials leading this increase (55%).
How frequently do you use mobile payment apps?
Americans are largely using mobile payment apps on a monthly basis (36%).
Compared to older Americans, Gen Zers and millennials are more likely to use mobile payment apps daily.
What do you value most in a mobile payment app?
Almost half of consumers who use mobile payment apps value convenience above all else (49%), followed by the ability to make contactless payments (12%) and go cashless (10%).
Compared to other generations:
- Gen Zers are most likely to value rewards and discounts as well as minimal transaction fees.
- Baby boomers are most likely to value the ability to make contactless payments.
- Millennials and Gen Xers are most likely to use a mobile payment app if their friends and family also use it.
What prevents you from using mobile payment apps?
Those who don't use mobile payment apps largely prefer using cash (45%) or are concerned about data security (24%).
Younger generations are more likely to prefer using cash, while older generations are more concerned about data security.
Would you be more inclined to use a mobile payment app if you received holiday rewards and promotions?
of Americans would be more inclined to use a mobile payment app if they received holiday rewards and promotions.
Gen Xers and baby boomers would be most likely to use a mobile payment app that offered holiday rewards.
Key Takeaways for Marketers
With the rise of contactless payment, COVID-19 continues to change the way people shop.
The COVID-19 pandemic continues to disrupt daily life for many Americans, making the need for seamless shopping experiences more important than ever. With mobile payment apps offering a fast and easy way to request and send payments, it is no surprise that one third of Americans are using these apps more frequently now versus this time last year. Beyond the convenience factor, consumers are also in search of safer ways to shop – driving an increase in demand for contactless payment options offered by apps like Google Pay and Apple Pay.
Rewards and loyalty programs are a key feature driving the adoption of mobile payment apps.
Mobile payment providers can leverage rewards and loyalty programs to stand out from the competition, encourage adoption, and drive continuous use of their app. Compared to other generations, Gen Zers are most likely to value incentives like rewards and discounts (17%), while Gen Xers and baby boomers would be more inclined to start using mobile payment apps if offered special promotions this holiday season. Retailers are also helping to boost this momentum by offering cashback and rewards of their own to customers that opt to use mobile payment methods.
For some consumers, data security trumps convenience in the mobile payment arena.
While mobile payment apps offer a level ease and convenience, concerns around data privacy make some consumers reluctant to share information tied to their personal finances. Compared to Gen Zers and millennials, U.S. consumers over age 40 are much more likely to cite data security concerns as a factor preventing them from using mobile payment apps today. Mobile payment providers can gain favor among this age group by enforcing strict data security measures that help to build a sense of trust and ultimately validate the safety of their platforms.
‘Fluent Pulse’ reflects a daily online survey collected across Fluent’s portfolio of owned & operated websites.
Fluent attracts a massive audience across its network of owned media properties. While all segments of the US population are represented, the below are our most prevalent demographic skews:
|Demographic Attribute||Over Penetrated Among|
61% between the age of 18 & 44
|Education||High School Degree or Some College|
|Households with Children||42% of Audience|
On average, 150,000 – 175,000 consumers respond daily.
No, but representative of the overall Fluent Audience.
All responses related to this survey are anonymized; only survey responses will be disclosed. At no point will consumer’s personal information will ever be disclosed.
Data has been collected from U.S. adults on a daily or weekly basis, dependent upon topic, since March 10, 2020. All data is sourced from Fluent’s portfolio of owned and operated media properties. Results are specific to the Fluent audience and not reflective of the general U.S. population.
The data presented on this site does not reflect the official opinion, policy or position of Fluent, Inc. This research is only meant to inform and illustrate, as an example, the rich data assets Fluent can derive insights from to drive in-market strategies.