As we learned from a series of studies this year, the life of paycheck to paycheck is more prevalent than previously thought, including high income earners and other consumers who are not. not traditionally associated with the need to make ends meet.
For these consumers, various incentives associated with mass payments can save their lives.
PYMNTS October 2021 Mass Payments Reading Book: The Paycheck-To-Paycheck Edition, polled a balanced panel of over 3,900 U.S. consumers to discern the scope of mass payments, as well as the top payment preferences among those struggling to reach payday.
Finding that about 22 million paycheck-to-paycheck-to-paycheck consumers received at least one mass payment in June 2021, for example, the study states that “each of these paycheck-to-check consumers Payroll received an average of 13 mass payments that month, with an average value of $ 177.35. In other words, the average consumer living salary to salary and struggling to pay their bills received $ 49 billion in bulk payments this month, collectively.
A remarkable finding – although not entirely unexpected – is that these consumers “receive more employee incentives than any other type of mass payment, each of them receiving an average of 5.4 employee incentives per employee. month”.
By comparison, those who don’t have a hard time paying their bills or living paycheck to paycheck “received only 3.3 and 3.1 employee incentives in June, respectively,” on the other hand. That makes a total of 50 million ($ 8.4 billion) and 43.2 million ($ 8.9 billion) in employee incentives received by each group that month, respectively.
Plus, “Payments for referrals, reviews, and testimonials come right after. Every consumer living on paycheck to paycheck and struggling to pay their bills receives an average of 5.2 payments for referrals, reviews, or testimonials per month.
Get the study: Mass Payments Playbook: The Paycheck to Paycheck Edition
Digital wallets pair well with mass payments
Interestingly, when receiving mass payments, the majority prefer digital wallets.
Finding that 44% of mass payment recipients struggling between paychecks and with their invoices “would rather be paid through a digital wallet rather than using any other method,” the study adds, “That’s 33% more than the share of mass payment recipients not making a living from paycheck to paycheck who say the same thing.
“Google Pay and PayPal are especially important for consumers who live paycheck to paycheck. More and more consumers from paycheck to paycheck are citing PayPal as their preferred way to receive mass payments, with Google Pay immediately following, ”according to the study.
Choice of payments is of additional importance to those who struggle, and “consumers who live paycheck to paycheck and struggle to pay their bills are used to being able to choose how they prefer. get paid, with 75% saying they had two or more options for how to receive at least one mass payment in June 2021.
Read: Mass Payments Playbook: The Paycheck to Paycheck Edition
Consumers in difficulty will pay fees
The new data also reveals that cash-strapped consumers will pay fees for faster payments.
While paycheck-to-paycheck-to-paycheck consumers struggle to pay their bills five times more likely than others to prefer Google Pay over mass payment, the study reports that “consumers who prefer Google Pay and who also live paycheck to paycheck are even more willing to pay the additional fees. “, with 96% of them willing to pay extra” if that meant they could receive bulk payments through Google Pay “.
“Google Pay isn’t the only payment method that consumers living paycheck to paycheck would pay extra to use,” the study found. “Paycheck-to-paycheck consumers are the most likely to say they would pay additional fees to receive mass payments using each of their preferred methods. This underscores how valuable choice is for consumers whose mass payments are most critical for financial well-being. “
To download: Mass Payments Playbook: The Paycheck to Paycheck Edition