Consumer behavior is shifting; can banks keep up?

Core Insights - Consumer payment trends such as pushback on interchange fees, the rise of buy now/pay later (BNPL), and the emergence of crypto payments are expected to significantly influence the payments landscape by 2026 [1] Group 1: Interchange Fees and Consumer Behavior - There is a growing consumer pushback against interchange fees, which may lead to a decline in credit card usage in the future [3] - The Texas Restaurant Association is advocating for cash or debit card payments due to the increasing costs associated with credit card swipe fees, which reached $187.2 billion in 2024, up from $172 billion in 2023 [4] - The average swipe fee charged by Visa and Mastercard to merchants was 2.35% in 2024 [4] Group 2: Buy Now/Pay Later (BNPL) Trends - Budget concerns are driving the continued adoption of BNPL as a payment method, with 30% of U.S. consumers utilizing some form of BNPL solution [5] - The usage of BNPL is particularly prevalent among younger demographics, with 55% of Gen Z and 40% of Millennials engaging with this payment option [5] - There is an expectation that BNPL will expand into more categories, including everyday items such as groceries and pharmacy products [6] Group 3: Future Payment Technologies - The rise of agentic commerce and cryptocurrency is anticipated to attract consumers to new payment options in the upcoming year [6]