Industry: Payments

The concern about inflation among bank customers in the United States is seemingly cooling but new worries about energy costs are bubbling up with each new summer heatwave.

The average utilization rate of electricity is on the rise and, as a result, the cost of summer season cooling is set to spike. That has customers worried that their energy bills will absorb any savings they might be seeing on consumer goods.

According to JD Power, the percentage of U.S. bank customers who are financially healthy[1] has remained steady and the overall level of concern regarding inflation has begun to fall, but customers in every financial category are at least somewhat worried about the size of their energy bill.

It’s a discouraging development for customers trying to dig out of the financial holes left by the last two years, as they try to discern how they can manage both their energy consumption and their budgets in the face of unrelenting weather.

Financial Health Largely Flat as Inflation Concerns Wane               

The number of customers who are financially healthy remains steady at 30%, while 45% fall into the vulnerable category.

 

The number of bank customers who say that the cost of goods is increasing faster than their income decreased to 69%, the lowest level this calendar year.

 

Energy Tensions Rise

Just as inflation concerns have started to subside, a new worry has emerged. Nearly one-third (32%) of customers are extremely worried their energy costs will rise this summer, and 85% are at least somewhat concerned. These fears are highest among vulnerable consumers.

 

What’s more, more than half (55%) of customers say they are making daily attempts to reduce their energy usage by lowering their consumption, a rate that is highest among stressed customers (65%) and those over the age of 40 (63%). Interestingly, even among financially healthy customers, 55% say they have made daily adjustments, showing the universality of these concerns.

 

Customers have also begun to get assistance to pay for their utilities. Overall, 13% say that they have received financial assistance from the government or other organizations. The rate is highest for customers that are overextended (20%) and under the age of 40 (17%).

 

Rising Financial Temperatures

It certainly appears that just as customers have begun to get a reprieve from inflation, energy costs are here to throw everyone a curveball. But the reality is that if it wasn’t energy costs, it would be holiday shopping or travel plans or any other cyclical cost. The truth is that the financial health of customers in the United States has just not recovered yet, and that puts increased pressure on banks to help their customers manage these challenges.

While many banks are well-positioned to come to the rescue with budgeting tools, assistance programs, and a host of other solutions that are available to their customers, those solutions will only help if customers are aware of them and trust the institutions from which they are coming. It’s incumbent on the banks to communicate with their customers and proactively offer personalized help that meets their unique financial needs.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in June 2024. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

Even as the national economic indicators seem to suggest a turning of the financial tide, the majority of bank customers in the United States remain worried that consumer prices will rise in the future.

According to JD Power, the percentage of U.S. bank customers who are financially healthy[1] dropped slightly, leaving 70% of customers in some state of financial duress. What’s more, the specter of higher consumer prices seems to be looming, leaving many to wonder about their next move.

Accordingly, customers are counting every dollar out the door, and it’s put an increased demand on the budgeting and spending tools banks offer on their mobile apps and websites.

A Trend Reversal

After months of gradual improvement, the number of customers who are financially healthy dipped slightly to 30% in May 2024, while 45% fall into the vulnerable category.

The number of bank customers who say the cost of goods is increasing faster than their income decreased to 72%, but 88% are at least somewhat worried prices for goods they use every day will increase in the next three months.

Finding the Balance

With concern about high prices stubbornly persistent, customers are keeping a closer eye on their spending. Seven in 10 (72%) say that it is extremely important that their primary bank always shows an up-to-date available balance. Somewhat shockingly, 6% say that their bank’s mobile app or online banking website does not display their available balance, while 6% say they don’t know.

What’s more, 60% of customers say that their primary bank instantly updates their available balance when they make a transaction. Another 21% say it updates within a few hours, 7% say by the end of the day, while 8% say it takes the next business day. Interestingly, online-only banks do the best job of delivering up-to-date balances in a timely manner.

Customers are also increasingly open to financial aggregator tools, particularly as many have shifted funds to pursue higher yield accounts or get a loan from another institution. Three-fourths (75%) say it is useful that their bank shows the balances of their external accounts, rates that were notably high in customers under the age of 40 (88%) and among those in the overextended category (87%).

Controlling the Controllables

It is clear customers feel that some degree of their financial situation is out of their own control. They’re watching costs closely and trying to find ways to mitigate the effects of high prices with the tools at their disposal.

For banks, this means that they need to find a way to empower their customers to handle these ebbs and flows with confidence by bolstering the tools that they are working with in real time. Gone are the days where checkbooks were balanced by hand. Customers rely on the snapshot they get on their primary bank’s mobile app to be updated and comprehensive. Institutions that can do this will see fewer overdrafts and better budgeting management from their customers, which should in turn help customers seize more control over their financial health.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in May 2024. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

By embracing innovation and prioritizing personalized experiences, banks and credit card providers can redefine their role in enhancing financial well-being. We unpack the latest insights from the 2024 U.S. Retail Banking Advice Satisfaction Study in the June 2024 JD Power Financial Services Intelligence.

Here are some key insights that you can’t miss:

• Youthful Engagement: Younger consumers (<40) are actively seeking personalized financial advice. While they act on the advice received, satisfaction levels indicate room for improvement. Delivering robust tools and services alongside advice is crucial.
• Industry Standard Setters: Leaders like Citi, Bank of America, Chase, and American Express set benchmarks with proactive financial guidance, defining satisfaction norms.
• Frequency Optimization: Increasing interaction frequency across digital and traditional channels enhances satisfaction, engagement, and loyalty. A multichannel approach ensures comprehensive service accessibility.

Watch the full video for impactful insights on how improving customers’ financial health impacts loyalty and advocacy.

Bonus Content: Financial Health Personas

Understand the different groupings that Jennifer referenced in this edition of Financial Services Update. Your teams can begin to personalize financial services with strategic segmentation based on customer financial health personas. Access key demographics on the financially healthy, vulnerable, overextended, and stressed personas.

View Personas Details

Where can you find more insights like this?  

The JD Power U.S. Financial Health and Advice Program empowers banks and credit card providers to elevate customer financial wellness. By analyzing deep consumer insights and benchmarking performance, financial institutions can enhance their advisory services. Leveraging this data enables banks and credit card providers to optimize customer satisfaction, implement best practices, and refine strategies for superior financial outcomes. This proactive approach not only boosts service quality but also strengthens customer loyalty and market competitiveness.

Read the latest press release

More About These Experts 

Jennifer White is the Senior Director of Banking and Payments Intelligence at JD Power, is pivotal in shaping the financial industry’s understanding of consumer behavior. With over 20 years of market research experience, Jennifer leads prestigious studies, including the Retail Banking Satisfaction Studies and the Financial Health & Advice Program, driving critical insights that influence banking strategies across the U.S. and Canada. Her work on consumer financial health, digital banking trends, and fraud impacts is highly regarded and widely featured in top-tier publications like Forbes, The New York Times, and The Wall Street Journal. A respected thought leader and speaker, Jennifer’s expertise helps financial institutions enhance customer satisfaction, loyalty, and trust through innovative, data-driven strategies.

Miles Tullo is the managing director of the JD Power Financial Services team. He oversees the company’s consumer payments program, focusing on point-of-sale choice and non-credit card payment methods. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients.  

The Difference is Zelle

On the surface, it’s hard to parse the difference between most P2P transfer services. They all ultimately provide the same service with largely the same processing time. Zelle, however, no matter which specific bank is providing the end-user experience, tends to perform significantly higher in overall customer satisfaction than other brands. In fact, among the top eight performing brands in the study, seven are part of the Zelle network. They are (in alphabetical order): Bank of America, Capital One, Chase, PNC, Truist, U.S. Bank and Wells Fargo.

Interestingly, the three brands with the highest market share (PayPal, Cash App and Venmo) are all performing at or below the study average. That presents an opportunity for improvement in customer satisfaction for these platforms, and a chance for Zelle to expand its market share.

Users Love the One They’re With

Even though customers indicate there is room for improvement in the service they receive, 89% say they prefer the brand that they use most frequently for P2P transfers. Just 8% of P2P users say they “definitely will” or “probably will” switch the brand they use for sending money in the next year.

The most common reason customers are looking to switch brands for sending money is to be on the same platform as their friends/family (39%), followed by security concerns (28%) and poor customer service (19%).

Apple Pay Cash and Cash App customers have the highest intention to defect.  Conversely, less than 5% of Wells Fargo Zelle users indicate they are going to switch brands for sending money.[1]

The Opportunity Ahead

As P2P transfer services mature, users will start expecting more in terms of overall customer service. Whether that’s seamlessly integrating into a digital wallet, more convenience for paying at point of sale, or offering an increased level of security, platforms need to find a way to identify where their services can be strengthened, but also effectively communicate those improvements to users.

That’s evident in customers’ experiences with Zelle. Services in the Zelle network boast impressive customer service totals but lack the market share of other platforms. For Zelle to capitalize on the experience they’re providing, they’ll need to find a way forward that shows they understand how, when and why the user is transferring money on their platform so that they can convert on those high satisfaction scores into a broader user base. 

Find out More

This Banking and Payments Intelligence Report is based on responses from the JD Power 2024 U.S. P2P Transfers Satisfaction Study, which included 5,727 responses and was fielded in January-February 2024. It is authored by Sean Gelles, Senior Director, Payments Intelligence. Please contact us at the numbers below to connect with Mr. Gelles or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] * Indicates small sample size for Fifth Third Zelle, Google Pay and USAA Zelle

Banking and Payments Intelligence Report
May 2024

Leveling Out

While customers’ financial health has seen gradual improvement over the last six months, the changes are modest. Nearly one-third (32%) of respondents are financially healthy, while 43% fall into the vulnerable category. This stabilization reflects a certain acceptance of the current economic landscape.

While there may be acceptance, there is palpable uneasiness about managing inflation. Three-fourths (75%) of bank customers say that the cost of goods is increasing faster than their income and 42% are extremely worried prices for goods they use every day will increase in the next three months. Those figures both reflect the highest level observed in the past six months.

All Dried Out

That worry is likely a reflection of how much—or how little—liquidity bank customers currently have on hand. More than half (53%) of customers have less than $4,000 in their primary deposit accounts.

Interestingly, having a higher deposit level does not guarantee financial health. When asked about their deposits at their primary bank, 29% of healthy customers said they had between $10,000 and $49,999 on deposit compared with 26% of customers in the overextended category and 16% in the stressed category.

The Search for Higher Yields

To combat these concerns about funds, some bank customers have begun to shift their money from their primary bank to another institution often seeking to earn as much as possible. Overall, 22% said they have moved money from their primary bank shifting one-third of their deposits. This rate is highest among customers in the overextended category.

When asked why they moved their funds, some were required to make moves but among those choosing to shift deposits 42% said higher interest rates and cash back or other rewards (19%). Overall, 40% of primary savings customers earn less than 1% APY on their money, while 23% do not know what their savings interest rate is. This means there are some savvy customers taking advantage of current high interest rates to help grow their money, but a large portion are not making these money moves.

Chartering New Territory

While customers try to navigate the next phase of a very uncertain economic landscape, they are going to be on the hunt for any way they can gain an edge. Whether that’s a loan product, budgeting tools, or higher interest rate accounts, more customers than ever before are willing to test waters with banks both new and familiar.

That means that there is not only a need for more proactive customer engagement, but also an opportunity to help customers through a time of great stress. For banks willing to offer higher yield accounts, they have the potential to coax a lot of new business through the doors and, if done properly, convert that new business into long-lasting relationships.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in April 2024. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

With a remarkable surge in the use of P2P transfers, the May edition of the Financial Services Intelligence Update dives into JD Power’s newest research – the JD Power U.S. P2P Transfers Satisfaction Study. Over half of U.S. consumers have embraced P2P transfers, with a 10% rise in usage since Q3 2023.

In this video, Miles Tullo invites Sean Gelles, Senior Director of Payment Intelligence, to shed light on what matters most to customers when it comes to building loyalty and authority in the P2P landscape, as well as surprising brand performance observations on Venmo, PayPal, Cash App, and Zelle.

Here’s a rundown of the top moments showcased in the video.

Driving Factors of P2P Transfers Satisfaction

Maintaining customer satisfaction is paramount in deterring defection to new digital payment platforms. The key factors driving satisfaction with P2P transfers, ranked by importance, include:

• Account management through mobile apps
• Ease of money transfer
• Account linkage
• Security of funds and personal data
• Ease of receiving funds
• Customization of user experience

Brands excelling in these areas are reaping the rewards of exceptional customer loyalty. Only 8% of P2P users say they “definitely will” or “probably will” switch the brand they use for sending money in the next year.

JD Power U.S. P2P Transfers Satisfaction Study

The JD Power U.S. P2P Transfers Satisfaction Study offers an in-depth analysis of consumer satisfaction with brands providing digital money transfers between individuals. It encompasses valuable data on consumer behaviors, preferences, adoption strategies, and competitive benchmarking. Learn more about this study.

About Sean Gelles

Sean Gelles is a seasoned professional with 20 years of experience in consumer analytics, particularly in the payments industry. At JD Power, he spearheads research on various payment methods, aiming to enhance client competitiveness. Prior to this, he led analytics teams at American Express, leveraging customer data for improved digital experiences and revenue growth. Gelles holds degrees from Northwestern and Cornell University.

Follow Sean on LinkedIn

About Miles Tullo

Miles Tullo is the Managing Director of the JD Power Financial Services team. He oversees the company’s consumer payments program, focusing on point-of-sale choice and non-credit card payment methods. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients. 

Follow Miles on LinkedIn

Banking and Payments Intelligence Report
April 2024

Incremental Improvement 

While the changes in customers’ financial health are modest, they are trending slightly upward. Nearly one-third (32%) of respondents are financially healthy, while 44% fall into the vulnerable category. These are the most encouraging levels we’ve observed since August 2023.  

Customer sentiment regarding financial health status, stress levels and empowerment to improve one’s financial situation also ticked slightly upward to levels not seen since August 2023. These changes can be attributed to improving levels of customer savings to cover both short- and long-term needs.

Late Fee Cap Could Help
Even as conditions start to improve, 25% of customers say they have paid a credit card late fee in the past year. Unsurprisingly, this level is higher among financially unhealthy customers. When asked how much they paid on this late fee, 73% said the fee was more than the proposed $8 cap.

More than half (59%) of customers view the proposal to cap late fees as at least somewhat helpful, with 23% considering it to be very helpful. Younger customers—and those who are financially unhealthy—are the most likely to see the cap as a benefit.

Even though this proposed legislation could help some bank customers, most are unaware of it. Two-thirds (67%) said they have not heard of this proposed change. And even once they do hear about it, many customers doubt it will come to fruition. More than half (52%) of all respondents say they do not believe this change will take effect this year.

The Fraud Factor

As customers await changes on late fees, they are still grappling with instances of fraud on their bank accounts and credit cards. Nearly one-fourth (22%) believe their risk of fraud has increased during the past 12 months, with older customers more likely to believe they are more susceptible.

Customer ratings of both their bank and card issuer security protections have declined across all key metrics since June 2023, when JD Power established a baseline. Overall, customers with healthy financial situations and those under 40 years old are more likely to rate their bank or card issuer’s security higher.

Building Awareness

As customers begin a slow climb back toward better financial situations, many are still living in a precarious financial state. Receiving a large late fee on a credit card or falling victim to fraud could take a customer on the precipice of a healthier financial outlook and plunge them back into a vulnerable state.

As programs from governmental or in-house bank or credit card programs focused on tamping down late fees or bolstering security enter the marketplace, institutions will need to build awareness. It’s possible that even a small piece of aid could make a major difference.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in March 2024. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

 

Despite a challenging year for retail banks in 2023 due to factors like bank failures, inflation, and declining consumer health, customer satisfaction with primary banks only slightly declined, registering at 644 out of 1000 on the JD Power scale. However, satisfaction declined in four out of seven dimensions, with millennials leading the decline, particularly in levels of trust.

What do banks need to do to win over millennials? Watch the latest Financial Services Intelligence Update for key takeaways from the 2024 U.S. Retail Banking Satisfaction Study and discover what areas banks need to focus on to retain and grow younger generations before the relationship solidifies with another institution.

BONUS: Download our exclusive insights detailing each generation’s overall satisfaction (OSAT) with their primary retail bank, followed by satisfaction levels with the seven dimensions that determine overall satisfaction.

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JD Power 2024 U.S. Retail Banking Satisfaction Study

The J. D. Power Retail Banking Satisfaction Study^SM  is the longest-running and most in-depth, independent analysis of retail banking customers available. While some things have changed, banks have continued to rely on this invaluable study for unbiased intelligence about retail banking customers’ satisfaction with their primary financial institution.

The study measures customer satisfaction with retail banks in 15 geographic regions. Read key insights from this year’s press release and view the highest-ranking banks and scores, by region.

Read the 2024 U.S. Retail Banking Satisfaction Study Press Release.

View Press Release

Ready to leverage JD Power data and insights?

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Miles Tullo 

Miles Tullo is the Managing Director for the JD Power Financial Services team. He oversees the company’s consumer payments program, focusing on point-of-sale choice and non-credit card payment methods. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients. 

Follow Miles on LinkedIn  

Banking and Payments Intelligence Report
March 2024

Just as the inflation rate seems stuck at just above 3%, the financial situations of U.S. banking customers have similarly hit a plateau.

According to JD Power, the percentage of U.S. bank customers that are financially healthy[1] remains near the all-time low. While banks would love to use artificial intelligence (AI) to help customers out of this malaise, customers remain unconvinced that AI has a practical benefit to their financial health.

Stuck in Neutral

Customers’ financial health seems to have bottomed out. Nearly one-third (30%) of respondents are financially healthy, while 45% fall into the vulnerable category, virtually identical to levels we have seen during the past five months.

Customer sentiment regarding financial health status, stress levels and empowerment to improve one’s financial situation also remain virtually unchanged month-over-month. The effects of inflation are still being felt, but they are declining slowly. Lower grocery prices are the most recognized way customers are feeling relief from inflation, with prices for dining out, clothing/discretionary items and energy also falling.

 

Customers Not Sold on AI

While banks are investing time and resources to integrating AI into their offerings, customers are simply not convinced that AI is to be trusted. More than half (56%) say they only somewhat trust the quality of the output generated by their bank’s use of AI, with 32% saying they don’t trust it at all.

 

Part of that could be how banks’ utilization of AI is perceived by the customer. Bank customers either view their institution’s use of AI as less advanced than other industries’ solutions, or they simply don’t know. If banks are hopeful to incorporate AI into their solutions, they must understand that the measuring stick is not other banks, but how AI is used in other industries as well.

 

Falling Short of the Hype?

A central theme to AI marketing is often that it helps customers “focus on what matters most,” but banks have yet to prove AI solutions achieve that goal. Just 28% agree that the use of AI lets them focus on what matters most about their financial life. Nearly half (43%) said they do not know.

 

What’s more, customers do not believe AI is being used to personalize their service or experience. Nearly one-third (32%) said AI is not personalizing their experience at all, while 57% said only somewhat.

 

Proving the Concept

In a time of financial uncertainty, customers want tangible, personalized solutions from their banks. Broad, sweeping messages from institutions about how AI can help them simply don’t augur the type of trust that customers need.

For banks to truly integrate AI to a point where their customers feel comfortable, they need to go the extra mile by making the individual understand how they’ll personally benefit from it. A promise to keep them focused simply doesn’t win hearts and minds. To bridge this trust chasm, they need to show a true value tailored to each customer’s need. It’s a heavy lift, but if banks want to roll out AI in a way that will make meaningful progress, it’s the only way.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in February 2024. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

 

 

 

Banking and Payments Intelligence Report
March 2024

Digital wallets are now the fastest-growing payment method in the United States, with almost half (48%) of U.S. consumers indicating that they have used a digital wallet in the past 90 days, up 12 percentage points from 2023, according to JD Power data. What’s driving this surge in adoption and how will it all play out for the major players in the space?

This Banking and Payments Intelligence Report dives into the findings of the JD Power 2024 Digital Wallet Satisfaction Study to spotlight emerging trends and important shifts in consumer sentiment with digital wallet brands.

Satisfaction Increasing with Frequency of Use

Remember when cash was king? Now, convenience is the top driver of payment method choice and that’s causing consumers to increasingly turn to digital wallets for all types of transactions. Overall customer satisfaction with digital wallets is up 4 points (from 660 to 664, on a 1,000-point scale), according to the JD Power 2024 Digital Wallet Satisfaction Study, and the top factor driving that increase is ease of use, both online and in-person.

As a result, consumers are using digital wallets more frequently than ever. Overall, 48% of consumers have used a digital wallet in the past 90 days. Among those, 40% have used PayPal; 28% have used Apple Pay; 22% have used Venmo; and 19% have used Cash App Pay. Among more frequent users who access their digital wallets at least once a month, Venmo and Cash App Pay are seeing the highest overall customer volume. However, within the subset of digital wallet power users, who are using these services at least five times per month, Apple Pay is the most frequently used service.

A Market Ripe for Competition

While digital wallet usage rates and satisfaction scores are both going in the right direction, the industry is far from mature and gaps exist for new entrants. Chief among these gaps is inconsistent merchant acceptance. As we saw in the JD Power 2024 Merchant Services Satisfaction Study, only 57% of small businesses now accept digital wallets (94% accept cards) and some large merchants are still not wallet enabled in-store. Some wallets can only be used for online purchases while others can only be used in-store. And, no wallets are universally available at accepting merchants the same way that cards are.

The lack of perks associated with digital wallet providers, such as rewards programs or merchant discounts, is also a problem. Among the most important drivers of customer satisfaction with digital wallet providers, such as ease of use and security of account information, scores are lowest for perks. These gaps mean that customer loyalty is hard to secure in this space, with just 34% of customers indicating that they “definitely will not” switch brands.

Watch This Space

In the near-term, we expect digital wallet usage to continue to grow rapidly, outpacing other methods of payment at the point of sale, by virtue of its ease of use and its privileged position in the center of consumer lives in smartphones and online. It is noteworthy, for example, that the percentage of people who say they prefer to use digital wallets for online and mobile purchases rises 5 percentage points and 6 percentage points (from 12% to 17% and 22% to 28%, respectively) in 2024. As online and mobile continue to be the channels of choice for so many consumer transactions, digital wallets are certain to benefit from that volume.

Merchant acceptance will continue to grow. Seventy-nine percent (79%) of small businesses have a favorable impression of digital wallets, calling out fast transaction speed and customer demand as the primary attributes of the payment method, and traditional large merchant holdouts continue to convert as demand increases.

Find out More

This Banking and Payments Intelligence Report is based on responses from the JD Power 2024 Digital Wallet Satisfaction Study, which included 3,957 responses and was fielded from September-November of 2023. It is authored by Miles Tullo, Managing Director of Financial Services. Please contact us at the numbers below to connect with Mr. Tullo or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

Miles Tullo shares the results of the JD Power Buy Now Pay Later Satisfaction Study and surprising details on brands, like American Express, Affirm, AfterPay, Zip, and PayPal.

JD Power 2024 U.S. Buy Now Pay Later Satisfaction Study

The JD Power 2024 U.S. Buy Now Pay Later Satisfaction Study is a syndicated benchmarking study profiling the experiences of Buy Now Pay Later customers in the United States.

This study identifies the dominant factors that drive customer satisfaction with Buy Now Pay Later lenders.

View all the study details

Miles Tullo 

Miles Tullo is the Managing Director for the JD Power Financial Services team. He oversees the company’s consumer payments program, focusing on point-of-sale choice and non-credit card payment methods. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients. 

Follow Miles on LinkedIn