How inflation is changing the way people use payment apps

article

In this photo illustration, the logo of Venmo, Paypal’s mobile payment service, is displayed on smartphone and PC screens. (Photo illustration by Pavlo Gonchar/SOPA Images/LightRocket by Getty Images)

As inflation continues to impact many people’s spending habits, a new survey reveals that some Americans rely on payment apps to control spending.

Forbes released a study focused on how people use payment apps to split bills due to high inflation. The apps we use for purchases are Venmo, Zelle, PayPal, and the Cash app.

This global media company surveyed 1,000 adults who use these apps. Some young people say they use the app to split restaurant tabs, groceries and rent bills.

Nearly half of adults (47%) said they use payment apps in ways they wouldn’t normally use due to inflation, according to the survey.

Inflation eased to 6.5% y/y in December. It was the sixth consecutive year of year-on-year decline. According to the Associated Press, prices fell 0.1% monthly from November to December, the first drop since May 2020.

Related: Delayed IRS reporting rules requiring many Venmo, Cash App users to pay taxes

According to the survey, 18-25 year olds (64%) use payment apps to split restaurant bills and groceries, and 47% use them to split rent expenses. Only 25% of this demographic uses apps to cover bar tabs.

About 58% of 26- to 41-year-olds use payment apps to split restaurant bills, while 51% use them to split grocery costs and 35% split gas payments Use for

Research reveals that some adults use payment apps to split bills at least once a week, with 18-25 year olds (60%) and 26-41 year olds ( 58%) group. .

Another notable trend discussed by respondents was receiving “small” charges, payments of less than $5. Most payment app users surveyed (86%) said this amount was not worth charging.

Research shows that 30% of younger app users say they’re recurring for small payment requests, known as “Venmo Vultures.”

Respondents said a “vulture” is generally a friend, sibling, or significant other.

The Associated Press contributed to this report. This story was reported from Washington, DC