Payments Briefing: Digital payments are making it “easier than ever” for young consumers to make bad financial decisions
- This week, we look at how the convenience offered by digital transactions is making it easier for young consumers to overspend.
- We also discuss how the current global microchip shortage is impacting the payments industry.

Every day, millions of Americans use digital payment methods to pay for everything from rent and utilities to ecommerce purchases and dining out. A recent Banking and Payments Intelligence report by J.D. Power finds that while credit and debit cards continue to lead in overall use, digital alternatives like BNPL, mobile wallets and P2P payments are quickly rising in popularity, particularly among younger customers.
Yet, while this growth in digital transactions is undoubtedly making shopping more convenient, it’s also making it easier for consumers to spend beyond their means and make questionable financial decisions.
The report finds that in terms of overall utilization, debit and credit cards are still the most frequently used payment methods by a long shot. Across all age groups, 32% of consumers used a debit card in the past three months, while 28% used a credit card. Digital payment options were used much less frequently: only 2% of consumers used a mobile wallet, and just 1% used a P2P app or BNPL during the three-month period.
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