Key Findings
Younger and lower-income consumers are turning away from credit cards. They are favoring cash and debit cards (often within digital wallets) for managing expenses due to economic pressures.
Debit card usage within digital wallets has surged. Debit now underpins half of all grocery and retail digital wallet transactions.
Cash use is growing among older, higher-income shoppers. The use of cash for retail and restaurant purchases has increased in this group, possibly indicating a shift in how older affluent consumers are managing their spending.
Economic pressures are changing how consumers think about debt and credit. This is especially evident in the younger and lower-income groups who are showing signs of financial strain.
Age and income levels heavily influence payment preferences. Older high-income consumers are the most likely to rely on credit cards, while younger consumers, regardless of income, favor debit.
Implications
Businesses need to adapt. Companies must offer a variety of payment options, including debit card processing and digital wallet integration, to stay relevant to modern consumers.
Debit cards are becoming a powerful spending tool. Debit's integration into digital wallets opens up new possibilities for budgeting and convenient payment for younger consumers.
Financial institutions must address financial health concerns. Providers should focus on developing products and services that help consumers, particularly younger and lower-income ones, avoid debt and improve their financial well-being.
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