Generation Pay by Bank: Why Gen Z and Millennials Hold the Key to Widespread Adoption

Most consumers are not aware of pay by bank as an potion to pay. Raising awareness and offering the right incentives is crucial to adoption.

Download the Study What Consumers Need for Pay by Bank to Catch On

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    Pay by bank is a new payment method that is carving out a niche in the consumer payments space. Incentives may be the hook needed to draw in new customers. Certain consumers — particularly Gen Z, high-income individuals, or consumers already interested in this payment method — report increased interest in using it when offered discounts and cash-back rewards.

    In fact, data shows that incentives increase their interest in using pay by bank by 72%. This is true even for those who report they have no interest in the method to begin with. The data suggests there is plenty of opportunity to encourage consumers to use this payment method by offering incentives.

    Providers still have another hurdle to overcome. Most consumers are not aware of these options. The key to increasing adoption of this payment method may be offering incentives as part of a campaign to increase awareness.

    These are just some of the findings detailed in “What Consumers Need for Pay by Bank to Catch On,” a PYMNTS Intelligence and Trustly collaboration. The report focuses on consumers’ interest in using pay by bank as a payment method and the types of incentives that are attractive to consumers. It draws on insights from a census-balanced survey of 2,225 U.S. consumer conducted from July 18 to July 26.

    Inside “What Consumers Need For Pay by Bank to Catch On”

    • Insights into consumers’ interest in using pay by bank by demographics such as age and income
    • How certain incentives, such as discounts, pique consumer interest in using the method
    • The types of incentives most likely to attract new customers to the method
    • How customers use this payment method for non-retail transactions, such as ridesharing or betting

    Consumer interest in using pay by bank tends to increase with the size of discount the provider offers. However, even low discounts have the potential to attract many consumers. This report includes crucial information that providers looking to become market leaders need to know. Download the report to learn more.