Three in five Americans expect all payments to be digital in the “near future”, with 71% having already adopted mobile or online banking for payments, according to new research by Temenos.
The Temenos survey of 2,000 US adults found that 58% expect all payments to be digital, rising to 67% among millennials, as they increasingly shun cash-based payments.
The US Federal Reserve made its new instant payments system, FedNow, live in July, with Federal Reserve chair Jerome Powell saying at the time that it would make “everyday payments… faster and more convenient”.
Of those surveyed, 24% told Temenos they “never” or “rarely” – less than monthly – use cash to pay.
While 71% indicated they are using mobile or online banking to make payments, other digital payment methods also emerged, with 36% sending account-to-account transfers via wire or ACH at least monthly.
More than half, at 53%, use a payment app, like PayPal or Venmo, at least monthly, while 41% use a mobile wallet, such as Google Pay or Apple Pay.
Slightly fewer, at 26%, have made payments with QR codes and 16% do so using some form of cryptocurrency, according to Temenos.
The research revealed some dissatisfaction among Americans when it comes to payments speed, security and trust.
More than one-third of those surveyed said bank transfers today are “too slow and expensive”, yet 51% would only trust their bank or credit union when sending payments.
When thinking about digital payments, the research showed that security and protection from fraud (50%), privacy (40%) and a trusted brand (39%) are the most important factors for consumers.
Philip Barnett, president, Americas at Temenos, said: “It’s clear from this survey and our conversations with US banks that American consumers are looking for faster, cheaper and more convenient methods of payment.
“Temenos is working with US financial institutions of all sizes to modernise their payments capability to adapt and take advantage of these market changes.”
The new bank will run Temenos’ banking platform on Microsoft Azure to be able to create new banking services and products at speed and at a lower cost.