What is a wallet? That sounds like a silly question, but new digital currency is making this more difficult to answer each day. How has technology changed the way we pay for things? Well, check usage has decreased steeply over the past five years, with 49% of people claiming to use them less frequently. Whereas, 30% of people use online payment systems more often instead. What are some of the pros and cons of digital vs. cash? 35% indicate that expenses are easier to track when avoiding cash, yet 57% say cash prevents them from spending more than they should!
The bottom line is 41% prefer to do their banking online, as opposed to in brick-and-mortar stores. In a related trend, 35% of people want to try new forms of payments like digital wallets, P2P, and near field communication.
The problem is 83% of consumers are still concerned about the security of online transactions, listing this as the reason they haven't experimented with new digital currencies.
Research has uncovered three demographics when it comes to forms of payment:
1. The Techies - Early adopters who are always excited about new payment methods, they will use credit cards, smartphones or laptops (e.g. Paypal and Google Wallet), whichever form of payment is most convenient.
2. The Security Buffs - Next comes the security-minded individuals who, concerned about protecting their information from theft, typically stick to credit cards, checkbooks and good old cash transactions.
3. The Budget Bosses - And finally there are those who fear that new methods of payment will encourage more spending, and therefore trust only a carefully monitored debit card.
What's your preferred form of payment? Do you fully accept the digital purchasing era, or are you still hording currency in your mattress?