Payment Apps Popular Among All Age Groups
In the last few years, the market has become saturated with payment apps. From peer-to-peer transfer platforms to invoicing tools, there are countless ways for people to manage their money online. According to a new study from PSB and Financial Innovation Now, 66% of Americans have used payment apps in the past or actively use them now.
Nearly three-quarters (73%) of survey respondents said that payment apps are “vital tools” for managing their finances. A staggering 74% of respondents said they had used these apps to send money to family members, and 33% used them to pay rent. In a MetaBank study from last year, 24% of consumers said they would prefer using peer-to-peer (P2P) transfers to receive a refund from a business.
Payment apps are more popular among younger generations, but usage prevails across all generations: 83% of 18-24 year-olds have used at least one payment app, but so have 76% of adults ages 35-49 and 42% of Americans over 65. A study from Early Warning Signs, LLC showed that 50% of first-time P2P users are over the age of 45.
When comparing apps from tech companies to apps from financial institutions, 83% of respondents said tech-based apps did a better job at fulfilling their needs. They also said payment apps from tech companies were faster, more innovative, and more secure than traditional banking apps.