Newly released Logica® Future of Money Study finds that COVID-19 has accelerated adoption of new money behaviors
Gen Z and Millennials lead the way in behavioral changes, specifically when it comes to the way they pay for purchases
According to the latest Future of Money Study from Logica Research, COVID-19 continues to impact Americans’ money mindset. Key findings from the study show that the ongoing pandemic has accelerated critical behavioral changes surrounding finances and money. Gen Z and Millennials are driving the biggest shifts, particularly around payments.
The latest wave of the study reinforces the fact that cash is on the decline. In just one year, 9% fewer people used cash for their most recent in-person payment (25% Fall 2019 to 16% in Fall 2020). Debit cards are on the rise, along with the use of PayPal. One of the big shifts during the pandemic has been the use of peer-to-peer payments (P2P), with 27% of Americans saying they are using P2P more, largely driven by increases among Gen Z and Millennials.
When looking out to 2021, The Future of Money Study indicates that 41% of Americans will be paying down debt more, while almost a third (32%) intend to pay off credit card bills. They anticipate changing additional behaviors including:
- 30% say they will use mobile banking more
- 24% say they will use P2P more
- 19% say they will be putting money in the stock market more
- 18% say they will be talking to a financial planner/advisor more
- 14% say they will use POS, installment credit, Buy Now/Pay Later more
- 20% say they will tap into savings less
“The insights in this newest wave of our ongoing study show big shifts in consumer behavior that will mean new customer experiences and communications in the post-COVID world,” said Lilah Raynor, founder and CEO of Logica Research. “Financial brands and fintech companies have an opportunity to deliver innovative new products and experiences to customers to help them achieve their goals.”
You can access a copy of the Logica Future of Money Study here.