InvoiceCloud’s 2026 Annual State of Online Payments Report indicates a significant increase in consumer preference for mobile bill payments, with 45% of respondents now opting for mobile devices, a substantial rise from 29% the previous year. This represents the largest year-over-year increase in the report’s six-year history.
The report, which examines how, when, and why Americans pay their bills digitally, is based on a survey of 2,000 U.
S. adults who have paid at least one bill online in the past 12 months. Mobile has maintained its position as respondents’ preferred top bill payment channel for four consecutive years, with its lead expanding as consumers move away from traditional methods.
Kevin O’Brien, Chief Executive Officer at InvoiceCloud, noted, “Our report highlights how digital payment habits are evolving, and the rise in mobile payments shows the demand for more convenient bill-payment experiences. This research informs our innovation, so that our platform continues to support our customers and the diverse communities they serve.”
Sixty-eight percent of consumers surveyed used a mobile device to pay a bill in the past year, often accessing destinations such as a biller’s online portal (45%) or a bank’s online portal (28%). This underscores the continued central role of these digital pathways. Traditional methods continue to decline, with only one in five respondents mailing payments and in-person payments dropping to 15%.
Meredith Barnes-Cook, Senior Principal at Datos Insights, commented on the findings, stating, “The dramatic surge in mobile payment preference signals we’ve reached a tipping point in digital bill payment. What’s particularly notable is the democratization of mobile payments: lower-income consumers now show the highest mobile preference at 72%, challenging the assumption that digital adoption is primarily a higher-income phenomenon. Mobile isn’t a luxury channel—it’s becoming the accessibility channel for essential bill payments. Organizations that fail to deliver seamless mobile-first experiences risk alienating a growing majority of their customer base.”
Key findings from the study include that mobile payments are increasingly preferred by younger and lower-income consumers. Lower-income respondents reported the highest mobile payment preference (72%), compared to middle-income (67%) and higher-income (59%) respondents. Younger generations, specifically Gen Z (82%) and Millennials (88%), overwhelmingly selected mobile devices as their preferred payment method.
Convenience and flexibility are leading motivations for digital payments, with 28% of consumers citing the ability to pay when and where they want as their main driver. Across all income levels, 58% of consumers use mobile payments and smartwatches for everyday purchases.
Sustainability is also gaining traction, with 20% of respondents, double last year’s figure, citing paper reduction as a reason for digital payments. Millennials (24%) and Gen Z (20%) respondents are more likely to go paperless compared to older generations.
Regarding payment methods, debit card usage for online or mobile bill payments increased to 44% of consumers surveyed, up from 35% in 2022. Credit card usage declined from 37% in 2022 to 27% in 2025. Cryptocurrency now represents 0% of consumer responses.
Momentum toward paperless billing is accelerating, with 65% of respondents now receiving at least half of their bills electronically, and only 7% taking no action toward going paperless. However, disparities persist, as lower-income respondents are twice as likely to avoid paperless billing, while higher-income groups show stronger engagement with digital options.
Despite increased digital payment adoption, non-adopters cited online payment fees (39%), limited or hard-to-use payment options (18%), and security concerns (14%) as the largest barriers. Even adopters faced challenges such as a lack of payment reminders (22%), forgetting usernames and passwords (21%), and payments taking too long to process (18%).
Steve Schult, Chief Product Officer at InvoiceCloud, stated, “Mobile has set the standard for speed and convenience, and people expect the same when paying a bill. When something gets in the way, such as a missing reminder or a slow process, it leads to real frustration. We focus on removing those obstacles and giving customers straightforward tools that fit their preferred way to pay.”
The full data report is available at discover.invoicecloud.com/2026-State-of-Online-Payments-Report. More information about InvoiceCloud’s digital bill payment platform can be found at InvoiceCloud.com.
The State of Online Payments Report survey was conducted by Dynata and polled 2,000 U.
S.-based consumers over 18 years of age in October 2025 who have paid at least one bill in the last 12 months. Respondents were segmented and analyzed across age groups, gender, marital status, having children, and household income.
InvoiceCloud provides modern digital payment, customer engagement, and outbound disbursement solutions to over 3,250 customers across the utility, government, and insurance industries. The company is a leader in the electronic bill presentment and payment (EBPP) space. Its SaaS platform aims to enhance the customer experience, leading to higher digital payment, AutoPay, and paperless adoption rates. InvoiceCloud states that its platform helps clients improve customer engagement and satisfaction while lowering costs, accelerating payments, and reducing staff workloads.
