Preferred Payment Methods and Consumer Use of Pay by Bank: Data, Stats, and Graphs

Today’s consumers are looking for security, convenience, and rewards when it comes to choosing their payment methods. But, research also shows many consumers — 78% — prefer to pay for things the way they are used to. 

Here’s a collection of MX’s top statistics, graphs, and research on how consumers prefer to shop, top payment methods, and Pay by Bank.

In this post, you’ll find stats and graphics related to: 

• Factors That Determine Preferred Payment Methods
• Debit as the Top Preferred Payment Method
• Pay by Bank’s Relevance and Popularity

Factors That Determine Preferred Payment Methods

• 78% of consumers agree they still prefer to pay for things in a manner that they are used to. (What Influences Consumers Where They Choose to Bank, 2023)
• 42% of consumers report that the top factor most likely to determine their preferred payment method is ease of use. This is followed by security (32%) and the ability to earn rewards or points (19%). (What Influences Consumers Where They Choose to Bank, 2023)

• When it comes to paying bills, 59% of consumers elect to pay by bank so funds are paid directly from their bank accounts. (How to Drive Engagement When Consumers Refuse to Change, 2024) 

• Security (27%) and convenience (22%) are the most important factors for consumers when considering their bill payment methods. But, 11% say the ability to earn rewards or points is most important. (How to Drive Engagement When Consumers Refuse to Change, 2024) 
• When asked about their view on switching how they pay bills, more than one-third (36%) said they would consider switching if they received an incentive. (How to Drive Engagement When Consumers Refuse to Change, 2024) 

Debit Tops Preferred Payment Methods

• Consumers prefer debit cards nearly 2 to 1 over credit cards (50% vs. 22%) for online shopping. (Consumer Money Matters, 2022)
• Only Baby Boomers chose credit cards as their most preferred payment method for online shopping. All other generations selected debit cards as their payment of choice for online payments. (Consumer Money Matters, 2022)
• When it comes to in-person purchases, debit is the preferred payment method for those across every generation. Gen Z, Millennials, and Gen X all prefer debit over credit cards twice as much. (Consumer Money Matters, 2022)

Online Payment Preference

In-Person Payment Preference

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Pay by Bank’s Relevance and Popularity

• Pay by Bank is becoming more popular, especially when tied to a reward. Almost half of Gen Z would add Pay by Bank for online retailers where they frequently shop. As generations get older, they would be less likely to engage in that behavior. (Consumer Money Matters, 2022)
  • 45% of Gen Z likely to add a personal checking account as a payment method for online shopping
  • 41% of Millennials likely to add a personal checking account as a payment method for online shopping
  • 27% of Gen X likely to add a personal checking account as a payment method for online shopping
  • 22% of Baby Boomers likely to add a personal checking account as a payment method for online shopping

• 62% of Baby Boomers said they would “never” leverage Pay by Bank compared to an average of just 28% across all other generations. (What Influences Consumers Where They Choose to Bank, 2023)
• When asked in which cases they would be likely to add a personal checking account as a payment method, consumers were split into 3 primary camps overall (What Influences Consumers Where They Choose to Bank, 2023): 
  • If there was a promotion or added benefit (37%)
  • For retailers where they shop frequently (36%)
  • Never (36%)