Consumers Continue Abandoning Cash, Checks for Digital Payment Options

Nearly one-third of people plan on using checks and cash less this year than they did last year or not using them at all, according to the results of a survey conducted this month to understand consumers’ payment preferences.

The survey, conducted by Onbe, revealed that 74% of consumers prefer using digital options when making payments, and 65% believe that digital payment methods are more secure than using checks or cash. Only 8% of respondents said they planned on using cash more this year than they did in 2021.

“Americans are seeking more diverse payment options across the board,” said Bala Janakiraman, CEO of Onbe, in a statement. “As the COVID-19 pandemic continued through 2021, less people were using cash and turned to a range of digital payment options from P2P apps to mobile wallets and this trend will only increase in 2022. As consumers place an emphasis on speed, choice and convenience, it’s clear that more companies will adopt digital payment options over paper checks, cash and other traditional methods to meet consumer demands.”

For companies in the accounts receivable management industry, debit and credit cards are the most popular choice for consumers seeking to make payments on outstanding debts. Some companies have begun to experiment with platforms like PayPal and Venmo, but wide acceptance and usage of peer-to-peer networks like those is still off on the horizon. It is clear from the results of the survey, though, that consumers are heading more in the direction of digital payments, and companies in the ARM industry need to be aware of this so they can offer payment options that consumers will prefer to use.

“Instant, convenient, and personalized payment experiences are the name of the game in 2022 and beyond,” according to the report. “As digital spend channels become more popular, brands must be prepared not just to accept newer payment methods such as Apple Pay, Venmo, and other popular payment apps, but to make payments that enable spend channel flexibility, e.g., virtual incentives and rewards that can be used online or added to a mobile wallet for seamless in-person spend.”

As perhaps can be concluded, younger consumers are driving the adoption of new platforms and payment methods. For example, 45% of consumers between the ages of 35 and 44 own some form of cryptocurrency, compared with just 17% of consumers between the ages of 45 and 64.

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