The COVID-19 pandemic has exposed and elevated the financial vulnerability of all Americans. These circumstances have had a pronounced effect on the financial wellness of people who live on low and moderate incomes (LMI) and on certain demographic groups including women and Black and Latinx communities that disproportionately experience financial insecurity due in large part to longstanding, systemic racism and gender discrimination. This period has also seen an acceleration of adoption of newer payments technologies like contactless payment apps and digital wallets – whether early mover fintech products like PayPal, Venmo, and Cash App; big-tech firms like Apple, Facebook, Amazon, and Google; or newer and early-stage fintech product providers like Greenwood and Lili. 

However, there is limited research to understand how people living on LMI use these payment apps, and the potential for these technologies to meet wider needs beyond payments to advance the financial security of Americans living on LMI. Commonwealth fielded a survey with 648 respondents living on LMI, oversampling for Black, Latinx, and female participants, to understand their current usage of these payment apps, and to specifically explore opportunities to offer high-quality savings products within payment apps. 

Read our report to learn more about our findings, including:

• Integration with LMI customers’ financial lives;
• Interest in a savings product built into contactless payment apps;
• Opportunity to increase financial security through increased savings;
• Strong business opportunity for providers;
• Need to understand LMI customer preferences; and
• High interest in creative savings interventions.

This report is made possible thanks to the generous support of MetLife Foundation.