Debit cards are used by more consumers than other form of payment at the point of sale (POS), despite the huge range of options, according to new research.
A study by consumer research company JD Power found 78% of consumers used debit cards for purchases, making them the most popular form of payment, followed by cash (74%) and credit cards (66%).
Digital wallets were used by 36% of respondents and gift cards by 33%.
The study also found consumers favor different payment options for different scenarios, with everything from ease of use to the perception of social status associated with the payment form playing a role in why consumers prefer them.
Newer forms of digital payment are being used by a majority of consumers. More than half (55%) said they have been using newer forms of digital payment methods such as digital wallets, buy now pay later services, merchant apps and even cryptocurrency.
Miles Tullo, managing director, banking and payments at JD Power, said: “Consumers now use multiple different payment options for dozens of different reasons, mostly correlated with specific needs but sometimes out of basic habit.
“By analyzing consumer behavior across the proliferation of different POS payment types, scenarios and consumer personas, we’re able to provide critical insights on what’s driving utilization and what steps brands need to take to scale POS payment products.”
Consumers have a wide variety of payment options open to them, JD Power’s research found. This had led to a “splintering of the total addressable market”, Tullo said.