PayPal gains preference among consumers compared with banks

According to the study, 77% of cardholders are familiar with the PayPal service and 62% of those familiar are currently using the service. PayPal customers are loyal, with 81% preferring it for online transactions, and 79% using it whenever they can.

PayPal Me, PayPal’s P2P offering, is favored among consumers who have tried more than one P2P app (42% prefer PayPal Me compared to 19% who prefer their bank’s P2P payment service). Banks, however, do have some strengths when compared to PayPal—notably in direct deposit, ease of accepting payments, card selection and ease of use.

When it comes to overall trust with financial information, 80% of consumers trust their primary bank but only 55% said the same about PayPal. The majority of consumers (56%) are generally unwilling to direct deposit money into their PayPal account, although 69% of consumers believe PayPal’s technology is better at protecting their financial information.