The use of mobile wallets has increased nearly 50% throughout the pandemic. The number of consumers who did not use digital payments, but started to once the pandemic began, increased by 21% from 2020 to 2021. This is a dramatic increase in comparison to other digital payment methods, including biller’s website (11%) and mobile app (6%). According to new data from ACI Worldwide, provider of electronic payments and banking solutions, 51% of consumers who would not use a mobile wallet cited security as their top concern.
Sanjay Gupta, executive vice president of ACI Worldwide, said, “While consumer interest in mobile wallet payments continues to increase post-pandemic, there is an opportunity for billers to address the uncertainty around security of mobile wallets. Consumer education about how their information is being safeguarded can increase trust. In addition, consumer engagement through mobile notifications and reminders can help increase comfort with this payment channel.”
The use of mobile wallet payments increased from 26% in 2020 to 30% in 2021. More consumers have paid bills through this method in 2021 (44%) compared to 2020 (42%).
The ACI Speedplay Survey of 3,000 U.S. adults proved a majority of consumers (84%) are somewhat or very confident their financial data is secure when making bill payments. However, only 44% believe their data is more secure than it was 5 years ago, which is a decrease from 48% in 2020. Additionally, only 29% of consumers believe that companies properly educate consumers on how they keep data secure, which is a decline from 33% in 2020.
The Pulse study showed that consumers struggled to make payments throughout the pandemic. As a result of the pandemic, 15% of consumers missed bill payments. Out of the 12% who currently have monthly bills past due, 59% said it would take six months or less to catch up. The bills that consumers struggled to pay included rent (23%) and mortgage (17%) payments — a top priority over other bills, including electricity (15%) or credit card (10%).
The study also found consumers are using credit cards more often to pay bills. Since 2019, the use of credit cards to pay consumer finance bills like rent has increased 59%. In 2021, 10% more consumers made one-time telco and cable payments on a credit card compared to 2020. Also, 8% more are using credit cards to pay a utility bill in 2021 compared to 2020.
Gupta continued, “As we slowly ease out of the pandemic, billers are looking to alleviate some of the debt incurred as a result of the moratoriums that were placed, whether on evictions or utility shutoffs, to help consumers navigate financial hardships they may have experienced during the pandemic. Consumers are also looking to pay off their debts as quickly as possible as these moratoriums get lifted. Providing options for predetermined payment plans over time and other flexible payment options could be a win-win for billers and consumers alike.”
In 2021, more consumers (36%) would consider using a mobile wallet to pay bills in the future compared to 2020 (32%). As more consumers switch to digital, the use of biller’s website increased 37% and the use of biller’s app increased 30%.
For more information on the ACI Worldwide survey or Pulse study, visit the Speedplay Pulse page on ACI Worldwide’s website.
