Debit cards were the preferred payment method across generations in InComm Payments' annual study of 3,236 consumers surveyed in July 2023. The report also identified differences in cash, credit, mobile payments and incentives among Generation Z, Millennials, Generation X and Baby Boomers.

Generation Z ranked cash second, the only group to do so, and was more likely than the other generations to prefer cash for a large purchase. Its stated preference for mobile wallets increased 85% year over year, while concerns about the security of a favourite payment method fell 18%. Those are relative changes as reported by InComm.

Millennials were the most likely group to use mobile wallets and personal payment apps. They also reported more use of gift cards for dining and everyday online and in-store purchases than a year earlier. Some 60% said an incentive could prompt them to change payment methods.

Almost a third of Millennials reported changing payment methods because of economic conditions. InComm also found that 63% used coupons or discounts on at least half their shopping trips, making the search for value a prominent part of the group's reported behaviour.

Generation X showed a mixture of established and newer methods. Respondents reported using cash less often and credit cards and personal payment apps more often than the previous year. The group had the highest affinity for retailer loyalty programmes and reported greater preference for cash, credit and gift cards when dining or collecting food.

Baby Boomers were the most likely to expect to use cash, credit cards and cheques in the near future, and the least likely to use mobile wallets and personal payment apps. Only 13% said economic conditions had led them to change payment types, the lowest share among the groups.

Across generations, tap-to-pay use for everyday in-store purchases increased year over year. Millennials and Generation Z led mobile-wallet use in that setting, while Millennials were the most likely to use buy now, pay later for larger purchases, followed by Generation X.

InComm presented the findings as input for merchants deciding which payment and account-funding services to offer. The survey measures preferences and reported use in July 2023, including differences within an overall preference for convenient, widely accepted payment methods.