Marqeta releases fourth annual State of Payments Report

We’re excited to release our fourth annual 2023 State of Payments Report, surveying 4,000 consumers across three continents, including 2,000 in the US, about their purchase preferences. With the rise of embedded finance and digital financial services, our survey shows how these new payments and shopping solutions are now commonplace alongside legacy systems. Consumers today are working with multiple financial services providers, both traditional institutions and a range of digital payment tools and embedded financial services to meet their needs and provide a unified shopping experience.

Key Findings: State of Payments Report 

Our report shows the confidence that consumers have in new digital payment technology and embedded finance. Almost three-quarters (72%) of mobile wallet users shared that they would feel confident enough to leave their wallet at home, and only rely on their phone for making payments, up from 61% in 2022. A few additional stats include:

• 90% of US consumers surveyed who use mobile wallets reported that adding their card to their mobile wallet was much simpler than they had initially thought

• 86% of US mobile wallet users have made a purchase via a retailer’s embedded mobile app 

• 80% of US consumers reported using peer-to-peer (P2P) payment transactions at least once 

As consumers continue to adapt to the Covid-era boom in digital innovation, the preference for a unified payment solution has grown and driven the adoption of embedded finance services. Eighty-six percent of US mobile wallet users now make purchases directly through a retailer’s mobile app, with a stronger payment rewards system being a driver for the uptick. In addition, the demand for frictionless checkout was high, with 43% of respondents saying they have abandoned a purchase because it required them to download a new app or payment method. 

However, when it comes to banking preferences, consumers haven’t yet abandoned their primary or traditional banks. Seventy-seven percent of US respondents surveyed said they used traditional banks as their primary providers and 50% reported having never changed their primary banking partner at all.

Our report shows how consumers are balancing their loyalty to legacy providers and their desire for superior user experiences. Traditional and digital-first finance options have become intertwined, and consumers don’t want to give up either one, instead opting for multiple financial services providers to meet their needs: 42% of US consumers said they use both traditional and digital banking providers.

Read our full 2023 State of Payments Report. Find last year’s report here.