The U.S. demand for new payment solutions such as mobile wallets is high, and growing. Positioning your vending business to accept contactless payments is key to meeting consumers where they want to purchase.
Key findings from the fifth annual 2024 State of Payments Report by Marqeta include:
- 46% of U.S. respondents said they’ve used a form of contactless payments in the last seven days, compared to 80% in the United Kingdom and 69% in Australia.
- 90% of U.S. consumers who get paid immediately said it makes it easier to plan for finances and increases financial peace of mind.
Marqeta surveyed 4,000 consumers across three continents for its report, the results of which show a strong desire for modern payment solutions and embedded finance offerings, particularly among Gen Z and Millennials.
Consumers Ditch Physical Wallets For Mobile Payments
Marqeta’s 2024 State of Payments Report also shows that while US adoption of mobile payments is lower than in the United Kingdom and Australia, consumer preferences have significantly shifted from physical to mobile solutions, including in banking and wallet use.
Most global consumers reported frequently interacting with their mobile banking apps, with ATM use secondary and physical branch visits a distant third. Twenty-nine percent of U.S. consumers surveyed reported using an ATM in the last seven days and 21% visited their physical branch.
When it comes to mobile wallet use, more than half of U.S. consumers surveyed have at least one payment card in their mobile wallet, and 53% of them feel confident enough to leave their physical wallets at home, a figure that rises to 67% among 18 to 25 year olds. Additionally, the report suggests growing comfort with the idea of a cashless society:
- 71% of all U.S. consumers surveyed expressed they were neutral or did not have any worries about moving to a cashless society.
- Over a quarter of U.S. respondents (28%) now feel awkward when paying with cash, a particularly strong sentiment (49%) among consumers 18 to 34 years old.
- Almost one-third (31%) of U.S. consumers surveyed reported using cash less than they did 12 months ago, showing continued, steady movement toward digital payments.
Instant Payouts Becoming Essential for Workers
Instant pay options are becoming an important concept for the growing gig and shift economy, reveals Marqeta’s report. Almost a quarter of U.S. consumers surveyed consider themselves part of the gig economy, with that number increasing to over a third for those aged 18 to 34 years old. Of the U.S. respondents who consider themselves part of the gig economy, 87% said immediate pay would attract them to use a gig work platform.
While instant pay is yet to be an employment necessity, it is becoming increasingly vital for those who want peace of mind when managing their finances:
- 90% of U.S. consumers surveyed who get paid immediately said it makes it easier to plan for finances and provides financial peace of mind.
- Of those who have to wait for their paychecks, 39% of U.S. consumers said they are more likely to use credit to make ends meet, rising to 44% for 18 to 34 year olds.
- 37% of all U.S. consumers surveyed 18 to 34 years old said instant pay is a necessary benefit from their employers, above the 25% national average.
“The economic landscape is shifting as younger generations enter the shift and gig workforce more frequently, fueling demand for dynamic financial solutions,” said Todd Pollak, Marqeta's CRO. “We're entering an era where the largest demographic in the US — those 18 to 34 years old — are seeking fundamental changes in how they manage their finances and get paid, challenging banking and financial providers to innovate and meet these new expectations.”
