The number of US consumers using instant disbursements is increasing as we recognize the incredible speed and convenience of digital payment options. Our report “Measuring Consumers’ Growing Interest in Instant Payouts,” built in collaboration with PYMNTS Intelligence, sheds light on this trend, leveraging insights gathered from a survey of over 3,800 U.S. consumers to provide insights that we hope will help guide companies towards making adoption of instant a reality.
Here are our top five takeaways from the report on meeting consumer demand for money mobility with instant, digital disbursements, and download the whole report here.
1. Consumers prefer Instant Payments
Nearly 60% of United States consumers received disbursements from corporate and/or government agencies in the last 12 months. While this figure is marginally lower than it was at this time last year (due to a modest decline in government-issued disbursements) consumers are receiving more disbursements overall—especially instant disbursements, and the trend up is continuing as we get farther into 2024.
2. Lack of Availability Limits Adoption
When provided with the option, consumers favor instant digital payments over slower alternatives. The data backs this up: 77% of consumers expressed a distinct preference for instant payments when given the option. However, a lack of widespread availability was cited as a significant hurdle in the widespread adoption of instant payment methods. More availability equals more adoption, which means that the quicker businesses are on the draw, the more likely they are to gain or satisfy customers through an instant payment offering.
3. Willingness to Pay for Instant Payments is Trending Up
Convenience and speed are important to consumers and represent a lucrative financial possibility. Our study shows that consumers are increasingly willing to pay a fee for instant payment capability—29% of consumers would be willing to pay a fee to receive payment instantly, up from 26% in the previous year. Millennials, Generation Z and higher-income earners are some of the demographics most inclined to pay for instant payouts, which means this number is likely to grow as younger consumers gain a larger percentage of market share.
4. Security Concerns Are Lessening
Security concerns have historically posed a significant barrier to the widespread adoption of instant payments. Historically, though quick and convenient, these types of payments have had a reputation for being susceptible to fraud and identity theft. However, as market technology around security becomes more sophisticated, and more of an emphasis is put on secure transactions, the data suggests a positive shift in consumer sentiment.
Specifically, there has been a decrease in the number of consumers expressing data security apprehensions, with 17% fewer individuals citing security risk as a top reason for not choosing instant payouts compared to the peak in 2021. This trend suggests growing confidence in the safety and security of instant payment methods.
Conclusion: Digital Payment Adoption is One the Rise
As consumer preferences continue to evolve, businesses and financial institutions must adapt to meet the growing chorus of demand for instant payments. Understanding the trends and insights outlined in the report can help inform the why behind this transition to instant, as well as allow for real-time tracking of adoption across different industries. But the bottom line is simple: staying competitive in today’s dynamic market landscape increasingly requires instant payment options.
By aligning efforts to match consumer expectations, issuers can enhance customer satisfaction, retain existing customers, and attract new ones. To delve deeper into the findings, find the full report here to explore solutions for meeting consumer demand for instant payouts, connect with an Ingo Payments expert.
