Ahead of a Dedicated Panel Appearance at CES 2022, CI Surveys Show an Uptick in Contactless Payments and Payment Services Like PayPal, Especially among Millennials
Corporate Insight, the leading provider of competitive intelligence and customer experience research to the financial services industry, predicts that contactless payments will continue to increase in 2022, as the U.S. market starts to catch up to widespread international adoption.
Recent survey data from Corporate Insight has found that while Millennials are the most likely to complete contactless payments, only 20% of them do so “frequently” or “whenever available”, as compared to 11% of Gen Xers and 7% of Boomers.
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Among small business card holders, Corporate Insight found that younger users are driving larger adoption increases, with 51% of Millennial and Gen Z small business card holders making contactless payments “frequently” or “whenever available.” Contactless payment usage also appears to correlate positively with revenue, with 44% of respondents from the highest-revenue businesses making contactless payments “frequently” or “whenever available,” compared to just 23% of respondents from the lowest-revenue businesses.
Corporate Insight expects to see greater adoption of direct linking of credit cards to digital wallet services like PayPal, as younger generations show greater usage and higher overall satisfaction rates. PayPal stood out among digital wallet options, with 57% of respondents reporting that they currently use the service, compared to 15% of respondents using Venmo. Satisfaction rates were extremely high across the top four digital wallets in our survey, ranging from 89% at PayPal and 90% at Apple Pay, to 82% at Google Pay.
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“While nontraditional payment methods like contactless transactions, virtual card numbers and digital wallets range in popularity in the U.S., issuers will need to adapt to meet growing usage numbers, especially among younger demographics,” said Michael Ellison, president of Corporate Insight and moderator of a contactless payments panel discussion today at CES 2022 in Las Vegas. “We expect many card issuers to follow Bank of America’s lead in reissuing all its cards nationwide with contactless payment capabilities over the past year. As contactless payment satisfaction remains high and more younger consumers tap to pay, we predict an even larger usage increase across 2022.”
Corporate Insight tracks nontraditional payment technology including contactless payments and digital wallets across several of its research services:
- Credit Card Monitor
- Mobile Finance Monitor
- Small Business Card Monitor
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