2022 Eye on Payments: Part 1 — Increased demand for choice and variety, with strong preference for debit over credit

by Tom Pierce, PSCU

The payments landscape continues to rapidly evolve with the uncertain economic outlook. For the fifth year in a row, PSCU set out to gauge the current state of payment preferences among credit union members and other financial institution customers (“non-members”) in the 2022 Eye on Payments study. In this annual research, PSCU explores the factors influencing consumers when it comes to their choice and usage of different payment methods and how these factors may vary among different life stages and economic events. Key takeaways are provided for credit unions to look to when making decisions and optimizing offerings that adapt to the evolving preferences and needs of their members — to better serve them now and in the future.

In this first blog from our 2022 study, we explore consumer demand for choice and variety, as well as highlight the current state of debit and credit.

The Importance of Choice and Variety

The economy has been top of mind for consumers throughout 2022. Although the unemployment rate approached pre-pandemic levels over the summer, the Federal Reserve announced monthly interest rate increases to help curb inflation and hopefully avoid a recession. Despite the efforts of the Fed, when the survey was fielded in the summer, nearly nine out of 10 respondents (87%) agreed they were worried about the economic outlook. Three-quarters (74%) also reported they were concerned about their personal finances, with younger consumers more concerned than those ages 58 and above.

 

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