Digital Payments Increase Across All Generations

Age is but a number when it comes to using digital peer-to-peer (P2P) payments, according to a study recently released by Early Warning Services.

The “Digital Payments Adoption Study” surveyed more than 9,000 American consumers between the ages of 18 and 65 who are aware of P2P, own smartphones, and have used online or mobile banking, to determine consumer attitudes, adoption, and use of digital payments.

The study found that, across generations, digital payment adoption and use is high. Consumers cited trust in their financial institutions and trust in their family and friends as the top reasons they use digital payments, with baby boomers ranking trust in financial institutions as their primary influence to use digital payments, and millennials and Generation Xers naming recommendations from friends, family, or peers.

Not surprisingly, the survey showed that millennials are most likely to engage in digital payments, with more than 75 percent of millennial respondents saying they have used online or mobile P2P payments. However, they are followed closely by Generation X (69 percent) and baby boomers (51 percent).

Survey results suggest that consumers who use P2P payments use them routinely, with 49 percent of millennials responding that they use P2P payment services at least once a week, followed by 42 percent of Generation Xers and 32 percent of boomers.

The survey findings also indicated that consumers value payment services that they believe are secure and easy to use. Out of 13 features, boomers ranked security as the most important feature of a P2P service, while Gen X and millennials placed it third and fifth, respectively. Ease of use also is important, with consumers across generations pointing to difficulty accessing their financial information online outside of their financial institutions’ platforms as one of the most significant barriers to using digital payment services.