The adoption of digital payments solutions, including peer-to-peer apps, digital wallets, and contactless payments apps, has seen significant growth since the start of the COVID-19 pandemic. In fact, 59% of Americans now use more apps to manage their money than before the pandemic. This trend led Commonwealth to investigate how people living on low to moderate incomes (LMI) in the U.S. are using these apps, and what opportunities this may unlock for access to broader financial services. 

The findings from Commonwealth’s research overwhelmingly displayed an interest in savings solutions. Of those surveyed, 79% said they would be likely to use a savings solution on these apps. Our research found that such apps are integrated into users’ financial lives, and consumers demonstrate a high level of comfort and trust with using the apps, which indicates that these channels may be poised to expand to broader financial services. 

While the interest in savings solutions was high among all respondents, there was significantly higher demand among Black and Latinx users, which presents a unique opportunity to provide a savings product for groups that disproportionately experience financial insecurity.

Our findings are in line with global trends and leading industry research. The recent World Bank Global Findex 2021 report shows that receiving payments into an account is a catalyst for other financial services, such as relying on an account to save, borrow, and store money for cash management. Commonwealth’s research found that even in the absence of core product features, consumers find ways to use the apps of their choice as savings solutions. 

As these apps compete for higher market share (in the form of customer acquisition and retention), there is a strong business case for offering solutions to meet user needs. To share learnings and help inform product and solution design, Commonwealth’s Charvi Gandotra is facilitating a discussion with three leading innovators: Rishi Ahuja of Cash App, Dylani Herath of Greenwood Bank, and Helen Robb of Spruce Money by H&R Block. We are pleased to invite you to join us for the discussion and add to the conversation! 

During the webinar, we will discuss: 

• The business case for designing solutions for people living on LMI;
• Concrete examples of how industry leaders are designing intentionally for this user base; 
• Actionable insights on how digital players are building trust with users; and
• Creative ways in which innovators are making their solutions more engaging.

Have other topics you’re curious to learn about? Register for the webinar here, and send us your questions!