By: Primax
Today’s complex economic environment is defined by a balancing act between tradition and technology, confidence and caution. As consumers navigate the uncertainty, they are adopting a wide range of payment choices and preferences that deliver speed, convenience and control.
Primax has released its fifth annual Primax Payments Pulse study, which gauges the current state of payment preferences among financial institution customers, while exploring the factors that influence these trends. This research explores the various factors that influence consumers when it comes to choice and usage of different payment methods, as well as how different life stages and economic events affect those factors. The study also suggests ways that banks can optimize offerings to adapt to evolving preferences to better serve their customers — now and into the future.
Here are some key findings from the study:
Credit and debit hold their ground. Consumers are evenly split between credit (38%) and debit (38%) as their top payment method. For bank customers, credit holds a slight edge (40%) over debit (37%). Consumers prefer credit for full-service dining, big-box retailers, fuel purchases, major goods and transactions over $30. Debit is the go-to for smaller, everyday transactions such as fast food, small local retailers, pharmacies and grocery stores and dominates routine purchases under $30.
- Takeaways: Bank customers aren’t committed to one payment method over the other; rather, they choose based on purchase type, amount, environment and reward possibilities (cash back or points). Financial institutions should view credit and debit as complementary payment tools that strengthen customer relationships and capture more total transaction volume, rather than competing products.
Digital wallets and contactless are now default payment tools. Nearly seven in ten consumers (69%) now use a mobile wallet at least a few times per year and nearly three in ten consumers (28%) use it a few times per week. Most consumers (76%) have a credit card loaded into their digital wallet, and 63% keep two or more cards in their digital wallet — with 32% switching between them a few times each week. Contactless card adoption also remains strong, with 78% of consumers having a contactless card and almost half (43%) using it a few times each week.
- Takeaways: Digital wallets and contactless payments are now everyday tools woven into the fabric of modern commerce. Banks should make digital payments intuitive, secure and easy to adopt for all age groups to capture loyalty as usage continues to increase. Digital wallets are just one step in a broader evolution of payment infrastructure, with future rails like stablecoins and tokenized deposits having the potential to transform settlement speed, interoperability and transparency. Banks should consider engaging in early pilot programs or through partnerships with fintechs, like Primax, to build institutional knowledge and readiness for when these technologies become part of everyday use.
Buy Now, Pay Later (BNPL) and peer-to-peer (P2P) payments have become mainstream. BNPL programs continue to gain momentum, with 38% of consumers saying they would likely use the tool if offered by their financial institution — up from 22% in 2021. Four in ten consumers (41%) report using a BNPL service outside of their financial institution, such as PayPal’s Pay Later, Affirm or Klarna. Interest is strongest among younger consumers, as 70% of Gen Z and 71% of Younger Millennials say they would be likely to use BNPL through their bank, and 85% of Older Millennials have already used a BNPL program. P2P payments have reached widespread adoption, with 76% of consumers using P2P services at least periodically (up from 56% in 2021). P2P payments are central to daily life for younger consumers, with 39% of Gen Z and 38% of Millennials reporting P2P apps like Zelleâ and Venmo are their primary payment method.
- Takeaways: BNPL is now a standard expectation, especially among younger generations — and they expect installment flexibility to be built directly into their banking experience. However, most still rely on third-party providers, leaving an opportunity for banks to develop or partner on in-house BNPL programs to keep spending, data and relationships within their ecosystem. P2P payments are also now embedded in everyday financial habits. To stay at the center of their customers’ daily financial lives, banks should integrate trusted, low-friction P2P options to ensure real-time speed and security in order to strengthen engagement across demographics — and reinforce banks’ position as the central hub for customers’ daily transactions.
Cash remains a trusted option. Even as digital tools expand, cash plays a consistent role in consumers’ financial habits. Cash ranks as the third-most preferred payment method for 15% of bank customers, and 84% say they are likely to use it in the next six months. It remains the go-to for low-dollar purchases, tipping and avoiding credit card surcharges. Eighty-seven percent (87%) of bank customers say they would opt for cash or debit rather than pay a fee to use credit. ATMs remain an important access point for customers to access cash. Convenience is key – 47% use ATMs when they are most readily available, and 33% when banking after hours or when in a hurry.
- Takeaways: Even in a digital-first environment, cash maintains real value for customers who prize control, familiarity and immediacy — physical money still fulfills practical needs, as evidenced by consistent use across generations. While ensuring the broader payments experience feels seamless and modern, banks must continue to support accessible cash options. ATMs remain central to the cash experience. Banks should invest in enhanced ATM technology, intuitive interfaces and integration with digital account tools to help bridge the physical-digital divide.
Speed and responsiveness drive customer satisfaction. Immediacy is now a baseline expectation. Customers expect their financial institution to deliver speed, convenience and seamless digital access. More than half (55%) of bank customers use a saved payment method that automatically populates their credentials, underscoring a preference for low-friction experiences. When a financial institution issues a new card — whether for a new account, reissue or replacement — eight in ten (85%) bank customers, who received a digital card for temporary use while waiting for their physical card, report using it.
- Takeaways: Speed and convenience are critical drivers of satisfaction and loyalty. Every stage of the customer journey should be optimized for immediacy, from account applications to instant credit card approvals and digital issuance. In order to remain competitive, banks should also focus on reducing friction across all channels. A real-time mindset should be extended into your bank’s service model — from providing transaction alerts to your fraud response — in order to maintain convenient and consistent customer engagement across physical and digital experiences.
Fraud prevention and AI are redefining trust and security. One in ten consumers (10%) experienced card fraud in the past year – most often online (79%). The most common type of fraud involved products and services (44%), where consumers paid for items or services that proved inauthentic or never actually arrived. Impersonation schemes were also widespread (37%) with fraudsters posing as others to prompt actions that led to financial loss. Eighty-two percent (82%) of consumers say their choice of payment method is primarily driven by which option feels the most secure. Additionally, more than half of bank customers (57%) now use AI at least a few times per year, and 39% use it for financial planning and budgeting. Three in ten (31%) report they would feel comfortable using AI to make transactions.
- Takeaways: Fraud prevention and security remain top of mind for customers, with the majority basing their payment decisions on which option feels most secure. Customers expect their banks to deliver real-time monitoring, timely communication and quick resolution when fraud issues occur. More than half (57%) of consumers say they would take advantage of educational resources from their financial institution. Banks have an opportunity to lead in both digital literacy, such as the safe adoption of emerging technologies like AI, as well as fraud awareness.
The state of economic conditions and shifting consumer expectations is reflected in the current payments environment. Customers expect to have debit, credit, digital wallets, contactless, BNPL and P2P payment options readily available and be easy to use, with seamless integration across digital and physical touchpoints. It is imperative for financial institutions to meet customers where they are and ensure every interaction delivers safety, speed and convenience. And your bank doesn’t have to do it alone — consider partnering with a fintech company, like Primax, that can help expand and elevate your offerings.
Learn how your financial institution can effectively market to customers and achieve continual growth and success. Download the full 2025 Primax Payments Pulse white paper now.
