Discounts and Protection Could Shift How Digital Bank Customers Pay

Digital bank customers are more receptive to switching to direct-from-bank payments when offered discounts and buyer protection, according to a PYMNTS Intelligence report. This shift could potentially alter how these customers conduct transactions, moving from retail and groceries to bill payments and account-to-account transfers.

The study found that consumers with digital bank accounts are 30% to 50% more likely to switch payment methods when incentivized compared to the average consumer. Digital wallets are already popular among these users, with 45% preferring them over other payment methods. The report indicates that incentives like cash benefits and protection are key factors in this shift, as 43% of digital bank users cite immediate cash benefits as the main reason to use the payment method.

Despite this potential, only 12% of bank customers view this method as a debit substitute, but 72% say they would either already do so or would if incentivized. The research suggests that digital bank users represent a practical early-adopter segment for this new payment method, rather than a distinct market segment.