Users of payment apps say they make paying easier, but security is a concern for some

From books to dating, many aspects of life have gone digital, and wallets are no exception. Today, many Americans use the internet and smartphones to transfer money to friends, family and businesses. And while users praise these platforms for making it easier to pay for things, they also express concerns about security and privacy, according to a new Pew Research Center survey.

PayPal – which was founded more than two decades ago – is used by a majority of US adults (57%). Smaller shares report they’ve ever used Venmo (38%) or Zelle (36%), and about a quarter (26%) say they’ve ever used the Cash App, according to the survey, which was conducted May 5-17. July. In total, 76% of Americans say they have ever used at least one of these four payment sites or apps.

Across each of the platforms measured in the survey, adults under 50 have adopted these tools at higher rates. But the starkest age gap is related to Venmo: 57% of 18- to 29-year-olds report using Venmo, compared to 49% of those aged 30 to 49 and smaller shares among those 50-64 (28%) and 65 years and older. (15%).

Use of specific payment apps or websites also varies widely by race and ethnicity. For example, 59% of black Americans say they ever use the Cash App, compared to 37% of Hispanic Americans and even smaller shares of white (17%) or Asian Americans (16%). In contrast, black adults are less likely than other racial or ethnic groups to report being Venmo users.

There are also differences according to household income. Higher-income adults are more likely than middle- and lower-income adults to be Venmo or PayPal users. In contrast, lower-income adults are the most likely to say they use the Cash App: About 36% say so, compared to 24% of middle-income and 18% of higher-income adults.

Why Americans Use—or Don’t Use—These Payment Sites or Apps

When asked what motivates them to use these sites or apps, users most often point to ease. About six in 10 Americans who have ever used PayPal, Venmo, Zelle or the Cash App (61%) say a major reason for doing so is because it makes paying for things easier.

About half of these users (47%) say a key factor for using these platforms is because it makes it safer to send money to people. Smaller shares say a main reason they use these platforms is that other people they know use them (34%) or that it allows them to share expenses with others (21%).

The reasons for using these tools vary by age. About 44% of adults aged 18 to 29 who have used these payment sites or apps cite sharing expenses with others as a main reason, compared to 23% of those aged 30 to 49 and less than one in ten for those aged 50 and elderly. And users under 50 are more likely than those 50 and older to say that a key factor is that other people they know use those sites or apps.

While there are a number of reasons why people gravitate towards these payment apps or websites, there is a segment of the audience that has never used them. One of the most cited barriers is lack of interest: 67% of Americans who say they’ve never used PayPal, Venmo, Zelle or the Cash App say lack of interest is a major reason.

Those who do not have experience with these money transfer platforms also point to a lack of necessity, as well as mistrust. About six in ten non-users say a main reason for not using these payment apps or sites is because they don’t need them (59%) or because they don’t trust their money (58%). A much smaller proportion of this group (16%) cite a lack of knowing how to use them as a main reason.

Distrust is a major obstacle for many older Americans. Two-thirds of Americans 50 and older who have never used these payment apps or sites say a main reason they don’t use them is that they don’t trust these platforms with their money. That share drops to 39% among those 18 to 49.

This age pattern shows up elsewhere as well: Older non-users are more likely than their younger counterparts to cite not needing these platforms, lack of interest or not knowing how to use them as the main reasons for not using them.

Some lack confidence that payment apps or websites keep consumers’ personal information safe

As Americans have turned to digital options to buy goods or transfer money, concerns about security and hacking have followed. This has sparked a larger debate about the vulnerability of payment platforms and whether banks and payment app services have a responsibility to repay consumers who have lost money to fraud.

The centre’s new survey finds mixed views among users about whether these platforms can protect people’s information from bad actors. About a third of payment app or website users (34%) say they are somewhat or not at all confident that payment apps or websites keep people’s personal information safe from hackers or unauthorized users.

By comparison, smaller shares of these payment app or website users (20%) say they are extremely or very confident that these platforms keep people’s information safe from hackers or unauthorized users. The largest share (46%) report that they are somewhat confident that payment apps or websites keep personal information away from hackers.

Black users are more skeptical than other groups: 43% say they are only slightly or not at all confident that payment sites and apps keep personal information safe from hackers or unauthorized users, compared to about a third of white or Hispanic users users. (There were not enough Asian-American payment app or website users to be split out in a separate analysis.)

There are age differences too. Adults 50 and older who have ever used these payment sites or apps are more likely than those 18 to 49 to describe their level of confidence as little or not at all (39% vs. 31%).

People who have never used these payment platforms are very skeptical that these services keep users’ information safe. About eight in 10 Americans who have never used these payment apps or websites say they have little (20%) or no confidence (59%) that these services keep people’s information safe.

About one in ten payment app or website users say they have been victims of fraud, hacking

Americans’ concerns about the security of their personal data come as some users report personally being the target of fraud or hacking.

About 13% of people who have ever used PayPal, Venmo, Zelle or the Cash App say they’ve sent some money and later realized it was a scam, while a similar proportion (11%) report having their account hacked .

These negative experiences are more prevalent among certain user groups. Black and Hispanic Americans who use payment platforms (22% each) are about twice as likely as their white counterparts (10%) to say they’ve sent money to someone and later realized it was a scam. Black and Hispanic users are also more likely than white users to say their account has been hacked.

There are also differences according to household income. About 20% of lower-income Americans who have ever used these payment apps or sites say they have been the target of this type of fraud, while a similar share say the same about having their account hacked while using these platforms, compared to about. one in ten or fewer users from middle or upper income households. There are also modest age differences. For example, 18% of 18- to 29-year-old payment app or website users say they were scammed for money they sent, compared to 12% of those 30 and older.

Note: Here are the questions, answers, and methodology used for this analysis.

Monica Andersen is associate research director at the Pew Research Center.