Sixth annual study highlights growing mobile momentum, rising expectations for simple digital payment experiences, and increased demand for convenience and paperless billing.
BOSTON – December 9, 2025 – InvoiceCloud, a leading provider of digital billing and payment solutions, today released findings from its 2026 Annual State of Online Payments Report. Among consumers surveyed, 45% now prefer to pay bills via mobile device, up from 29% last year—the largest year-over-year increase in mobile preference in the report’s six-year history.
The report examines how, when, and why Americans pay bills digitally. Its findings are based on a survey of 2,000 U.S. adults who had paid at least one bill online in the previous 12 months.
“Our report highlights how digital payment habits are evolving, and the rise in mobile payments shows the demand for more convenient bill-payment experiences,” said Kevin O’Brien, Chief Executive Officer at InvoiceCloud. “This research informs our innovation, so that our platform continues to support our customers and the diverse communities they serve.”
Mobile has been respondents’ top preferred bill payment channel for four consecutive years, and its lead is expanding. Sixty-eight percent used a mobile device to pay a bill in the past year, often to access a biller’s or bank’s online portal. Nearly half of respondents (45%) used a biller’s portal, while 28% used a bank’s portal. Traditional methods continue to decline: one in five respondents mailed payments, and 15% paid in person.
“The dramatic surge in mobile payment preference signals we’ve reached a tipping point in digital bill payment,” said Meredith Barnes-Cook, Senior Principal at Datos Insights. “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.”
Additional findings from the study
- Younger and lower-income respondents favor mobile. In the study’s income-group analysis, 72% of lower-income respondents preferred mobile payments, compared with 67% of middle-income and 59% of higher-income respondents. Mobile preference was also high among Gen Z (82%) and Millennial (88%) respondents.
- Convenience and flexibility motivate digital payments. Twenty-eight percent of respondents named the ability to pay when and where they want as their main reason for using digital payments. Across income levels, 58% reported using mobile payments and smartwatches for everyday purchases.
- Paper reduction matters to more respondents. Twenty percent cited reducing paper as a reason to pay digitally, double last year’s figure. Millennials (24%) and Gen Z (20%) were more likely than older generations to go paperless.
- Debit cards outpace credit cards for online and mobile bill payments. Forty-four percent reported using debit cards, up from 35% in 2022. Credit card use declined from 37% in 2022 to 27% in 2025. Cryptocurrency accounted for 0% of responses.
- More consumers receive bills electronically. Sixty-five percent now receive at least half of their bills electronically, while 7% reported taking no action toward going paperless. Lower-income respondents were twice as likely to avoid paperless billing; higher-income respondents showed the strongest engagement with digital options.
- Fees and friction remain barriers. Among respondents who had not adopted digital payments, 39% cited online payment fees, 18% cited limited or hard-to-use payment options, and 14% cited security concerns. Bill payers also reported missing payment reminders (22%), forgotten usernames or passwords (21%), and payments taking too long to process (18%) as challenges.
“Mobile has set the standard for speed and convenience, and people expect the same when paying a bill,” said Steve Schult, Chief Product Officer at InvoiceCloud. “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.”
View and download the full 2026 Annual State of Online Payments Report. To learn more about InvoiceCloud’s digital bill payment platform, visit InvoiceCloud.com.
About the Survey
The State of Online Payments Report survey was conducted by Dynata and polled 2,000 general 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. For complete survey methodology, please email [email protected].
About InvoiceCloud
InvoiceCloud provides modern digital payment, customer engagement, and outbound disbursement solutions. The company serves more than 3,250 customers across the utility, government and insurance industries and is a leader in the electronic bill presentment and payment (EBPP) space. InvoiceCloud’s SaaS platform enables continuous enhancements to the customer experience, resulting in higher digital payment, AutoPay, and paperless adoption rates. By switching to InvoiceCloud, clients can improve customer engagement and satisfaction while lowering costs, accelerating payments, and reducing staff workloads. To learn more, visit InvoiceCloud.com.
Media Contact
Amanda Glagolev
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