New MX Study Finds 64% of U.S. Consumers Prefer to Pay Bills Manually Each Month

Survey of 1,000 U.S. adults revealed tracking finances and ensuring sufficient funds as the top reasons consumers prefer to pay their bills manually each month

Fifty-six percent of consumers expect financial institutions to provide them with clear, actionable, data-driven insights about their finances

LEHI, Utah – May 30, 2024 – New research from MX Technologies, Inc., a leader in actionable intelligence for consumers and the financial providers that serve them, reveals nearly two-thirds of U.S. consumers prefer manual processes instead of automated payments to pay their bills. Younger generations are most likely to choose automated payment options - 42% of Gen Z (42%) and 41% of Millennials set up automatic payments with each provider compared to only 29% of Gen X and Baby Boomers. 

“In today’s increasingly challenging economic environment, it’s interesting to see a majority of consumers still relying on manual processes — adding more burden and potentially stress to managing their finances,” shares Jane Barratt, Chief Advocacy Officer and Head of Global Public Policy, MX. “Financial institutions and fintechs have an opportunity to play a pivotal role in relieving the mental burden for consumers with proactive, personalized notifications and intuitive money management tools that can do the heavy lifting for them and meet them where they are on their financial journey.”

The survey of 1,059 U.S. adults shows 36% have never switched how they pay a bill. In addition, most consumers never switch payment methods or direct deposits once established. And, 65% of consumers say they have never switched their direct deposit to a different financial institution. Other top findings include: 

Consumers are creatures of habit, but incentives could drive change. While the majority of consumers (51%) prefer to keep their payment methods the same for convenience, more than one-third (36%) say they would consider switching if they received an incentive.

Demands for personalization present opportunities to increase engagement. Consumer demands for personalization continue to rise with 47% of consumers expecting greater levels of personalization in banking than ever before. Fifty-three percent also expect their financial provider to leverage the data they have about them to personalize their experience.

Consumers define what it means to live paycheck to paycheck. Fifty-five percent of consumers say they are living paycheck to paycheck. But definitions of what that means vary. The largest cohort (32%) defines it as the ability to pay bills each month but inability to contribute to savings or retirement. The study also found women (57%) were more likely than men (52%) to say they are living paycheck to paycheck today.

Consumers have an optimistic outlook on financial security. Twenty-five percent of consumers feel completely financially secure today and more than half (56%) of respondents said they will be financially secure someday. The optimism is even higher among younger generations with 62% of Millennials and 71% of Gen Z reporting they’ll feel financially secure someday.

To access the full report, please visit: https://www.mx.com/research/driving-engagement-for-consumers-research/

About MX

MX Technologies, Inc. is a leader in actionable intelligence, enabling financial providers and consumers to do more with financial data. MX provides end-to-end solutions for financial institutions and fintechs to connect to, understand, and act on customers’ financial data. To learn more follow us on X and LinkedIn @MX or visit www.mx.com. 

About the Survey

This survey of 1,059 American adults was conducted by MX in Q1 2024 using an online survey platform. Results included an even split in responses across each generation (Gen Z, Millennials, Gen X, Baby Boomers) based on birth year, as well as gender (Note: nonbinary respondent sample size too small to calculate) and ethnicities (White and non-White [Asian, Black, Hispanic, Other]). Household income comparisons were calculated based on the following annual household income responses: 

• Low household income = Less than $50K annually
• Middle class = Between $50-$100K annually
• High household income = More than $100K annually