Phones and Digital Wallets Now More Popular Than Credit Cards

Published: 19.07.2024

A new survey by ABI Research on behalf of the NFC Forum has reported that more than 80% of respondents have used a smartphone or similar device to conduct payments.

The survey includes other interesting information about the rising new trends in the payment processing ecosystem. Here are some highlights.

Leave Your Phone at Home

A recent study revealed that a majority of individuals who have engaged in mobile contactless payments express a preference for using their smartphone or smartwatch over their traditional card. Additionally, 95% of respondents admitted to leaving their physical wallet or purse at home on at least one occasion, opting to rely solely on mobile payment methods instead.

he study also highlighted the significant popularity of digital wallets among Generation Z consumers, with a staggering 79% of them regularly making use such platforms. In contrast, only 26% of baby boomers and seniors exhibit a similar level of enthusiasm for digital wallets.

Among other age groups, the usage of digital wallets varies, with 44% of Generation X shoppers, 63% of bridge millennials, and 67% of millennials expressing favorability towards digital wallet services.

Credit Cards in Comparison

In comparison, fans of good old payment cards are heading into even more hurdles. Mastercard has announced its intention to raise specific credit card fees starting on April 15. The company plans to increase its network “assessment” fee from 0.13% to 0.14%, resulting in an annual rise of $259.1 million, considering the over $2 trillion in Mastercard transactions from the previous year.

Despite the fee increase, many credit card users still find value in maintaining traditional banking relationships. A survey revealed that 57% of respondents are more likely to obtain a credit card from a bank they already have an account with. Cash-back credit cards are particularly popular, as 44% of survey participants stated that their most recent credit card acquisition was a cash-back card.

hen asked about the reasons for acquiring their most recent credit card, 33% of respondents mentioned the appeal of earning rewards on daily purchases, while 27% cited the desire to build credit as their primary motivation. These findings suggest that while fees may be increasing, the benefits and rewards associated with credit cards remain significant factors for consumers.