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: