18% of consumers use a combination of payment methods

While US consumers can choose from a variety of payment alternatives when purchasing goods and services, PYMNTS research found that the average US consumer used fewer than four payment methods in retail stores and restaurants over the past year.

Using statistical analysis, PYMNTS separated consumers into three groups – called “payment diversification characters” – based on the range of payment methods they used in-store over the year. preceding the survey.

These characters were defined in “Credit Card Surcharges”, a PYMNTS and Payroc collaboration based on a survey of 2,879 credit card users in the United States.

Get the report: Credit card surcharges

“Slightly diverse consumers” used an average of 2.4 point-of-sale (POS) payment methods over the past 12 months – typically cash, debit cards and credit cards. They made up 64% of consumers surveyed.

“Somewhat Diverse Consumers” used five point-of-sale payment methods, including non-traditional alternatives such as PayPal and gift cards. They made up 18% of consumers surveyed.

“Highly diverse consumers” used about seven payment methods, often including digital wallets, PayPal, gift cards, and buy now, pay later (BNPL). They made up 18% of consumers surveyed.

Not surprisingly, consumers in younger generations and those in the highest income brackets reported the highest levels of payment diversification.

32% of millennials, 30% of bridge millennials and 23% of Gen Z report being very diverse — more than 19% of Gen X and 6% of Baby Boomers and Seniors who said the same.

Twenty-two percent of consumers with annual incomes over $100,000 were highly diverse, compared to 20% of those earning $50,000 to $100,000 and 13% of those earning less than $50,000.

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