InvoiceCloud Report: Study Shows Mobile Tops Online Payment Preferences; Pay-by-Text Adoption Grows 5x

Sixth annual study highlights growing mobile momentum, rising expectations for simplified digital payment experiences, and increased demand for convenience and paperless billing

BOSTON--(BUSINESS WIRE)--InvoiceCloud, a leading provider of digital billing and payment solutions, today released findings from its 2026 Annual State of Online Payments Report showing that mobile payment preference has surged in the past year. Forty-five percent (45%) of consumers surveyed now prefer to pay bills via mobile device, up from 29% last year. This marks the largest year-over-year increase in the report’s six-year history.

The 2026 Annual State of Online Payments Report examines how, when, and why Americans pay their bills digitally. Insights are based on a survey of 2,000 U.S. adults who have paid at least one bill online in the past 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.”

Although mobile has been survey respondents’ preferred top bill payment channel overall for four consecutive years, this year’s findings show its lead is expanding as more consumers move away from traditional methods such as mailed checks, in-person payments, and drop box or kiosk payments, as well as desktop-based portals. Mobile is increasingly the way people access digital bill payment channels. Sixty-eight percent of consumers surveyed used a mobile device to pay a bill in the past year, often to reach destinations such as a biller’s online portal or a bank’s online portal. Nearly half (45%) of respondents used a biller’s portal and 28% used their bank’s portal, underscoring the central role these digital pathways continue to play in the payment ecosystem. Traditional methods continue to decline, with only one in five respondents mailing payments and in-person payments dropping to 15%.

“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 key findings from the study include:

• Mobile payments preferred by younger and lower-income consumers: Mobile adoption continues to expand as an accessibility driver. Lower-income respondents reported the highest mobile payment preference (72%) compared to middle-income (67%) and higher-income (59%) respondents. Younger generations are especially mobile-oriented, with Gen Z respondents (82%) and Millennial respondents (88%) overwhelmingly selecting mobile devices as their preferred payment method.

• Convenience and flexibility lead digital motivations: Twenty-eight percent (28%) of consumers surveyed say the ability to pay when and where they want is their main motivator for using digital payments. Across all income levels, 58% of consumers surveyed use mobile payments and smartwatches for everyday purchases.

• Sustainability gains traction: Twenty percent (20%) of respondents, double last year’s figure, cite paper reduction as a reason for digital payments. Millennials (24%) and Gen Z (20%) respondents are more likely to go paperless compared to respondents from older generations.

• Debit over credit: Forty-four percent (44%) of consumers surveyed use debit cards to pay bills online or by mobile, up from 35% in 2022. Credit card usage by respondents has declined from 37% in 2022 to 27% in 2025. Cryptocurrency has effectively exited the landscape, now representing 0% of consumer responses.

• Momentum toward paperless billing accelerates: A strong consumer shift toward digital billing surges, with 65% of respondents now receiving at least half of their bills electronically and only 7% taking no action toward going paperless, suggesting broad momentum for digital adoption. However, disparities remain — lower-income respondents are twice as likely to avoid paperless billing, while higher-income groups show the strongest engagement with digital options.

• Barriers and pain points remain: Despite increases in digital payment adoption, respondents who are non-adopters cited online payment fees (39%), limited or hard-to-use payment options (18%), and security concerns (14%) as the largest barriers. Even when digital channels are adopted, bill payers surveyed indicated that they face challenges such as lack of payment reminders (22%), forgetting usernames and passwords (21%), and payments taking too long to process (18%).

“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.”

To view and download the full data report, visit discover.invoicecloud.com/2026-State-of-Online-Payments-Report.

To learn more about InvoiceCloud’s leading 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 [e-mail].

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.