Banks and fintechs must work harder than ever to provide a smooth digital experience for their customers, warns card issuing platform Marqeta as it publishes its latest consumer money report.
Marqeta’s 2022 State of Consumer Money Movement Report looks at consumer payment, banking and shopping preferences, revealing that digital adoption is on the rise. The company surveyed 4,000 consumers across three continents, including the UK, Australia and the US.
Covid-19 and the hyper awareness around hygiene drove a surge in the adoption of mobile wallets and contactless payments. Seventy-five per cent of people surveyed globally have used a mobile wallet in the last 12 months.
More than half (56 per cent) of consumers said they’ve gotten so used to contactless payments they find it irritating if they have to enter a PIN number. Sixty-seven per cent of consumers said they now prefer mobile payments as they have more in-built security features.
Almost half of UK consumers (46 per cent) say they can count on their hands how many times they’ve used a bank branch in their lifetime. Half of 18–24-year-olds say the idea of going into a physical bank is completely backward and alien to them.
“While the shift to digital payments was born out of necessity, many are happy to completely step away from in-person banking,” says Anna Porra, European strategy director at Marqeta. “And it’s easy to see why – with long queues, inconvenient opening hours, and hygiene concerns particularly during the pandemic creating the perfect storm to shift consumer appetite away from in-person experiences that weren’t very popular to begin with.
“With physical branches closing at unprecedented rates, banks must ensure they adapt their products and services to operate online seamlessly. As contactless limits continue to rise and more merchants welcoming contactless payments, banks and fintechs must work harder than ever to provide a smooth digital experience for their customers that provides them with security, giving consumers the digital convenience they crave.”
According to the report, 41 per cent of respondents said the start of the Covid pandemic decreased their use of cash. Australia and UK based respondents were broadly aligned on this point with 53 per cent of Australian respondents and 55 per cent of UK respondents stating the start of the pandemic decreased their cash. But this fell to just 32 per cent among US respondents.
For further insights, download the full report at marqeta.com/uk/2022-state-of-consumer-money-movement.