PHILADELPHIA, PA — Most U.S. consumers now prefer receiving payments digitally rather than by paper check, but many businesses continue relying on legacy payout methods, creating a growing gap between consumer expectations and corporate payment practices, according to a new report from payments platform Onbe and research firm NRG.
The companies’ 2026 Payouts Landscape Report found 89% of consumers prefer digital payout methods over checks, despite paper checks remaining the third most common form of business-to-consumer payouts. The findings are based on a survey of 1,500 U.S. consumers.
The report suggests businesses risk weakening customer loyalty by failing to match the digital payment experiences consumers have come to expect in other areas of daily life.
According to the survey, 98% of respondents use digital payments each month, while 94% described embedded payment experiences—such as those used by rideshare applications—as convenient.
Younger consumers reported the strongest preference for digital payment options. Eighty-eight percent of Generation Z respondents and 87% of Millennials indicated they expect to maintain or increase their use of payment applications this year, while about half in both groups said they would rather receive payouts through payment apps than via automated clearing house transfers.
Melissa Hentschel, chief executive officer of Onbe, argued that businesses relying on traditional payout methods risk falling behind changing consumer expectations.
“Consumers are no longer experimenting with digital payments; they depend on them,” Hentschel stated. “When payouts fail to match the speed and simplicity of how people already pay, it creates a friction that forward-thinking organizations are moving quickly to eliminate.”
The study also found that 72% of consumers expect to receive payouts within one week or less, while 71% believe digital payment methods are more secure than physical alternatives, an increase of 12 percentage points from the previous year’s survey.
Confidence in mobile payments also continued to grow, with 74% of respondents indicating they are comfortable making in-store purchases using only their smartphones, up six percentage points from 2025.
Onbe and NRG concluded that organizations offering faster, more flexible digital payout options may be better positioned to improve customer satisfaction and retention as consumer payment preferences continue shifting away from paper-based methods.
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