Thursday, April 29th, 2021
Speak of COVID-induced ways of life and money is one sector you can’t ignore. Studies focused on November’s post-election period have shed new light on changing customer spending habits.
Today, US Customers would rather use debit instead of credit cards according to Logica’s The Future of Money Report 2020.
The Future of Money Report 2020
Logica is a San Fran.-based data company. For this particular poll, it studied over 1,000 American grownups and, to cut across all generations, a cohort of 200 from ages 16 to 23.
The researcher feels this year carries hidden contrasts between global opportunities & challenges, more so in the world of money.
“We’ve witnessed speedy change and new habits on the money front thanks to the Coronavirus pandemic. US citizens have met unanticipated hurdles in their potential to generate money and stay on top of finances.”
Debit Has Snowballed Since November Elections
The weeks following the November election saw 38 percent of shoppers make all their in-person payments with a debit card to surpass credit cards; used by only 25 percent.
But the signs were crystal clear even pre-election. During the fall period (ahead of US elections), 41 percent used a debit card for in-person transactions compared to the 28 percent who used a credit card.
Consumer trends show an increasing liking for debit cards from way back in 2019; when 31 percent preferred debit over the 29 percent who chose credit. In the meantime, consumers are increasingly dropping the use of cash for in-person payments. It dipped 23 percent in 2020’s fall, put side by side with 2019’s 28 percent.
It’s only in web payments where debit & credit usage almost equals with 40 percent paying through credit cards and 38% opting for debit. But these are not the only payment methods available, 17 percent of consumers prefer PayPal over plastic.
Buy Now Pay Later Solutions
The researcher also investigated the adoption of “buy now pay later” solutions. So far, PayPal Credit leads at 53 percent, second-place is Affirm at 21 percent, and third-place is Afterpay at 20%. Still, only 25 percent had tried PayPal Credit and a meager 5 percent had utilized Afterpay or Affirm.
Consumer trends post-election show a change in spending habits. More notable is an increasing liking for debit cards and decreased credit card usage.