Digital is the New Language of Money

Digital is the New Language of Money: Americans predict payment apps will move to the top spot in their wallet and would like to manage their financial lives in one place

According to new findings released in the Koski Research Future of Money Study, Americans predict that apps will be the most common in-person payment type in 5 years. This puts the technology at parity with cash and ahead of credit and debit cards in the future.

Which payment app will own this prime wallet real estate is up for grabs. PayPal has first mover advantage, as 44% of Americans currently use it. Over half also currently use another type, such as a store app (18%), bank digital wallet (16%), Apple Pay (10%), and Google Pay (7%).



Peer-to-peer payment services (P2P) seem well-poised to capture this space. Over a third (36%) of Americans surveyed in the Koski Research study report that they currently use P2P apps, and they most widely use it for commerce.
Pay for a product or service (71%)
Payback (52%)
Send money (49%)
Split costs (31%)

Americans are looking for digital innovation throughout the financial spectrum. More than four in five Americans (84%) say they are interested in managing their money from one online central platform for deposits, spending, and saving. They desire full financial integration – nearly two-thirds say they would keep their money in one digital app for deposits and payments. "Americans are looking for better, integrated ways to manage their finances across different aspects of their financial lives, including their income, their spending, their saving, and their investing," says Lilah Koski, CEO of Koski Research.

How we invest is likely to see significant disruption as well. In a head-to-head matchup of computer vs. human for investing performance, 57% of Gen Z said they believe a computer would provide better performance over time (vs. 40% of Millennials, 35% of Gen X, and 40% of Boomers). All generations expect that advice from a computer would cost them less in fees, though the younger generations place less emphasis on discounted fees from computers.

As consumers move to a digital money mindset, businesses must find ways to meet consumer needs.

About the Future of Money Study

The Koski Research Future of Money Study is conducted by Koski Research and is designed to provide insights to organizations to help improve people's financial lives. The study is conducted online among 1,000 U.S. General Population Adults 18 and over. The sample is balanced on gender, income, and age. The study includes an augment sample of 200 older Gen Z (16-19), which is not included in total. Results are not weighted.