Welcome to the future of fintech disruption: 2024 Fintech State of Payments Report
As a companion piece to our fifth annual State of Payments Report, we have produced an additional version of our fan-favorite industry report that’s catered to fintechs. We surveyed 4,000 consumers ages 18 and above across the United States, the United Kingdom, and Australia to explore how consumer behaviors and preferences are changing and how fintechs can help shape next-gen payment solutions.
The Gen Z and Millennial generations are driving much of this change as they step outside traditional financial services and into more modern, sleek payment solutions. To serve these evolving needs while fostering trust, fintechs must understand how consumers manage their money throughout its lifecycle—pay, keep, spend—to boost customer loyalty and capture more of the market. The fintech landscape is dynamic, so understanding how (and why) consumers operate in their financial lives is critical.
“The economic landscape is shifting as younger generations enter the shift and gig workforce more frequently, fueling demand for dynamic financial solutions.
We're entering an era where the largest demographic in the US—those 18-34 years old—are seeking fundamental changes in how they manage their finances and get paid, challenging banking and financial providers to innovate and meet these new expectations.”
Todd Pollak, Chief Revenue Officer, Marqeta
Enter the Marqeta 2024 Fintech State of Payments Report. Download it today for a comprehensive look at the strong desire and rising demand from consumers for modern payment solutions, cutting-edge banking services, and frictionless offerings. You’ll uncover valuable stats, compelling comparisons by country, and actionable guidance for fintechs creating the next generation of payment solutions.
Here are 5 key takeaways from the report, and what they mean for your fintech.
#1) The shift toward a cashless society is a growing opportunity for fintechs and fertile ground for disruption—especially in the U.S.
Among consumers who use mobile wallets, an impressive 96% have at least one card stored digitally. And 62% feel confident enough to leave their physical wallet at home. This sentiment is weaker in the U.S., where just 46% of respondents said they’ve used a form of contactless payment in the last seven days, compared to 80% in the U.K. and 69% in Australia. However, the trend toward cashless payments persists, fueled by the draw of fast, convenient, more modern digital payment solutions.
#2) Consumers are intrigued by modern payment solutions that offer personalized rewards, frictionless user experiences, and unique offerings geared toward digital-savvy consumers
Nearly three in four (71%) U.S. consumers surveyed expressed they weren’t concerned about moving to a cashless society, and more than a quarter (28%) of those respondents said they feel awkward when paying with cash. That number jumps to half (49%) when surveying consumers 18-34 years old, who were especially uncomfortable paying with cash.
Fintechs that differentiate themselves have the chance to capture a greater share of the market by offering standout, innovative card solutions with compelling value propositions.
#3) Younger generations are leading the move to non-traditional financial providers
42% of U.S. consumers surveyed said they would get financial services from a non-traditional provider, including a social media platform, retailer, or tech brand. Among U.S. consumers 18-34, the positive sentiment is even higher, at 63%—thus broadening the market opportunity for fintechs who can facilitate fast, seamless, frictionless experiences.
#4) In the growing gig and shift economy, consumers want to be paid faster
A growing number of U.S. workers consider themselves part of the gig economy, illuminating the challenges of irregular payment schedules—and how those irregularities impact workers’ abilities to manage their financial lives. 90% of U.S. consumers who got paid more quickly said it makes it easier to plan for finances and increases financial peace of mind.
It’s critical for employers and platforms to find ways to deliver value and incentives for workers to prevent attrition—and fintechs can empower them to do so. With innovative, flexible accelerated wage access (AWA) solutions, fintechs can deliver tangible benefits to both employers and workers.
#5) Consumers are using peer-to-peer (P2P) payment methods for everything these days
From splitting bills and sending payment requests to less expensive cross-border payments, about half (49%) of consumers are tapping P2P payment apps for credit cards, debit cards, and bill pay. This is signaling a transition from P2P as single-purpose apps to those that offer robust and even bundled product features.
Their popularity is centered around their convenient, inexpensive, global nature, fostering a broad appeal. Fintechs should consider how those qualities can be integrated into other offerings, including value-added services such as instant notifications, reward programs, and integrated financial management tools that can take P2P payments to the next level.
Fintechs are positioned to empower consumers unlike ever before
The way consumers get paid, keep, and spend their money is undergoing a massive transformation. Modern needs require modern solutions—including mobile wallets, P2P apps, and AWA—that enhance the consumer experience while introducing speed and convenience that traditional solutions often lack.
As consumers get more comfortable with digital-first and non-traditional offerings, fintechs will need to balance building trust with their abilities to create modern, flexible, innovative solutions that capture consumers’ attention—and wallets. Remaining customer-centric is paramount to meeting consumers’ needs—at every part of the money lifecycle.
Curious to learn more? Read the full 2024 Fintech State of Payments Fintech Report for our complete findings and the insights you need to adapt your business to meet your consumers’ ever-evolving financial wants, needs, and demands.
