Why Consumers Are Choosing Digital Wallets, Debit, and Credit Cards Differently

Today’s consumers are more intentional than ever about how they pay. Some choose methods that help them stick to a budget. Others reach for options that offer rewards. And more than ever, convenience is shaping the final decision, especially online.

A recent survey of over 2,500 U.S. consumers, conducted by PYMNTS Intelligence, uncovered the patterns behind these choices. It revealed a clear split: people either want to control their spending or maximize their perks, and their preferences vary depending on whether they’re shopping in-store or online.

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In-Store: Budgeting and Rewards Guide Decisions

In physical stores, many shoppers lean on debit cards and cash to control their spending. Fourteen percent of debit users and 20% of cash users said budgeting was the main reason for their choice. For these consumers, financial discipline is key.

Meanwhile, credit card users are more likely to be motivated by rewards. In fact, 40% said they use credit cards in-store specifically to earn points or cashback. Payment security is also a factor, with some consumers favouring cash to avoid digital fraud risks.

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Online: Convenience and Security Take Center Stage

Online, convenience becomes a bigger priority. Many budget-conscious shoppers still use debit cards, about a quarter said they like the ease of tracking payments, while 14% mentioned budget control as a key factor.

Credit card users online remain focused on rewards, with one-third saying this is the top reason they pay with credit. Security concerns are more pronounced in the digital space:

• 8.3% of credit card users cited security as a deciding factor
• Only 4.8% of debit card users said the same

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Digital Wallets: The New Front-Runner for Online Convenience

The biggest shift is the growing popularity of digital wallets. Fifty-five percent of digital wallet users choose them for one reason, convenience. That’s more than those who prefer debit or credit cards for online shopping.

Trust in the payment provider also plays a role. PayPal users are more likely to mention brand trust as a key reason for use, while Google Pay and Apple Pay users emphasize convenience.

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What This Means for Businesses

• 40% of in-store credit card users are driven by rewards
• 44% of online debit users choose it for convenience
• 55% of digital wallet users prioritize convenience above all

These trends show that consumers are no longer loyal to just one payment method. They’re picking based on the moment: budgeting in-store, chasing rewards with credit, or opting for the fastest digital experience.

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