September 7, 2022 | 3 min read
5 trends from the State of Consumer Money Movement Report
Top findings from Marqeta’s 2022 State of Consumer Money Movement Report
The overarching theme of Marqeta’s 2022 State of Consumer Money Movement Report is convenience. Demand for convenience is what’s driving changes in banking, payments, and purchasing behaviors. As stated in the report, “consumer demand for convenience is converging with the increased accessibility of online shopping, banking and other experiences to make contactless and digital payments the new normal.” Doing anything in-person – whether it’s banking, shopping or just hanging out – is now an experience, and we expect to be wowed. Here are five key takeaways from the report.
Banking has changed, and there’s no going back
The report found that digital banking experiences have permanently overtaken in-person branch experiences. More than four out of five respondents complete most of their banking without a personal interaction. One illustration of this is that when consumers need to deposit money into a bank, only 27% would go to a physical bank branch to do it. That’s about the same percentage who said they would use an ATM. Fully 70% complete the majority of their banking online. Nonetheless, some positive feelings about banks persist. When asked if they agree or disagree with the sentiment that going into a bank branch now felt backward and alien, about half agreed and half disagreed.
Peer-to-peer payments apps have become banking alternatives
With 76% of respondents saying they’ve used a peer- to-peer (P2P) payment app within the past year, it’s clear that P2P mobile apps such as Venmo, Zelle, or Cash App are part of our routine. In fact, 49% of U.S. consumers said they were using them more than they were a year ago. The study also found clear indications that P2P is evolving to become a viable banking alternative. Half of U.S. consumers said that they accessed banking services through a P2P app:
71% activated a debit card issued within a P2P app
47% accessed digital banking services
21% used ACH money transfers
Mobile wallet acceptance is up and usage continues growing
Mobile wallets – the virtual wallet that stores payments information on a mobile device – is continuing to gain traction as a preferred consumer payment option. This has pressured merchants to make accommodations, meaning mobile wallets can be used at more locations. Over 70% of U.S. respondents said they have used a mobile wallet in the last 12 months – up from 64% in 2020.
Security remains a concern
One of the reasons that mobile payments have gained a foothold is security. More than two-thirds of consumers said they now prefer mobile payments as they have more security features built-in. Examples include the highly advanced methods of encryption and tokenization that secure a cardholder’s payment card information. Additionally, modern card issuing platforms like Marqeta give card program owners the ability to limit transaction approval based on dynamic spend controls ranging from location, time of purchase, merchant type, and more. Marqeta’s Just-in-Time (JIT) Funding features allows card programs to control authorizations in real time.
Shoppers are getting home delivery of more items more often
Consumers love the on-demand lifestyle that delivers items of all kinds right to their door. Three quarters of U.S. consumers say they use food delivery apps – up from 65% in 2020. Moreover, 43% of respondents say they order meals from restaurants more frequently. More than 1-in-4 (27%) of consumers have groceries or a meal delivered to their house each month. However, food is only part of the story. Consumers are more frequently ordering convenience store items, alcohol and prescriptions to be delivered to their home. Here’s the breakdown:
33% order convenience store items more often
31% order alcohol more
28% order home delivery of prescriptions more frequently
Despite the evolving attitudes and behaviors that are illustrated in these findings, the study describes a tug-of-war that exists between the desire for in-person experiences and the realization that they can be inconvenient. In the end, expect the desire for quick, easy, and convenient solutions to everyday problems – whether digital or in-person – to be the driving force for future shifts that shape our financial lives. Get the full report here.