2025
9
US Black Consumers: Payment Preferences Consumer Report 2025
2025-12-19T16:01:41+00:00
REPEEB00BDA_5E4E_4842_8C9C_CBDB35AF66D1
3695
189850
[{"name":"Banking and Payments","url":"https:\/\/store.mintel.com\/industries\/financial-services\/banking-payments"},{"name":"Market Intelligence Reports","url":"https:\/\/store.mintel.com\/report-type\/market-intelligence-reports"},{"name":"US","url":"https:\/\/store.mintel.com\/markets\/us-market-research"}]
Report
en_GB
Economic strain defines 2025 for Black households: median household income falls to $56K while unemployment climbs to 7.5%, pushing consumers toward low-risk, high-control payment tools such as debit and cash.
US
Banking and Payments
simple

US Black Consumers: Payment Preferences Consumer Report 2025

"Building trust will enhance financial literacy, fostering greater diversity in Black consumers' use of financial products and payment preferences."

Courtney Rominiyi, Multicultural Consumer Insights Analyst

Market Intelligence ReportsBanking and PaymentsUS

US Black Consumers – Payment Preferences and Trends

  • Economic strain defines 2025 for Black households: median household income falls to $56K while unemployment climbs to 7.5%, pushing consumers toward low-risk, high-control payment tools such as debit and cash. Yet a surprising 92% of Black internet users have tried at least one digital wallet, signaling tech-driven experimentation even amid budget tightening.
  • Industry impact is immediate: banks and merchants must balance security assurances with frictionless convenience as digital wallets and BNPL gain share. The biggest opportunity lies in solutions that merge flexibility with credit building, catering to Millennial men’s investment momentum and parents’ need for predictable cash flow.
  • The biggest threat is eroding trust. Higher unbanked and overdraft rates amplify skepticism toward fees and data privacy. Brands that ignore transparency risk exclusion from a segment whose population will reach 47.4 m by 2028, and whose multicultural influence will shape mainstream payment norms.

This Report Looks at the Following Areas:

  • Economic headwinds shaping Black consumers’ payment risk tolerance and product mix
  • Gender, generation and family structure gaps in financial product ownership and wealth building
  • Rise of digital wallets and fintech adoption, alongside persistent security and trust concerns
  • BNPL’s role as a cash-flow optimizer for higher-income earners and parents
  • Opportunities for store cards and credit products to foster loyalty through culturally relevant perks
  • Innovation spotlight: crypto checkout, vibe-based budgeting and niche rewards cards
Collapse All

  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for Black consumers and payment preferences
    • Opportunities
    • Turn BNPL into a wealth-alignment platform
    • Bridge the trust gap in digital wallets
    • Brands can win by rewarding everyday spending, simplifying mobile payments and aligning incentives with cultural moments to deepen loyalty

  2. THE MARKET

    • Black consumers close 2025 with tighter budgets as incomes slip and unemployment rises, shaping more-cautious, intentional payment choices
    • Black consumers and the economic outlook
    • Black men participate in wealth building earlier and more often, because of lower debt and higher investment access
    • Higher education boosts earnings for Black women, but heavy debt and household responsibility limit their ability to invest and build wealth
    • Graph 1: percent of those who ever attended college who currently have student loan debt, by race/ethnicity and gender, 2022
    • Wealth gaps show how even modest differences in debt and access shape who invests steadily and who has to wait
    • Graph 2: mean total borrowed, by race/ethnicity and gender^, 2017-21
    • Graph 3: mean contribution to retirement savings – early, mid- and late-career workers, by race/ethnicity and gender, 2022
    • Black consumers show higher unbanked and overdraft rates, with greater reliance on non-bank services showing evolving financial behaviors
    • Graph 4: bank account ownership and overdraft, by race/ethnicity, 2024
    • Graph 5: use of non-bank check cashing or money orders, by race/ethnicity, 2024

  3. THE CONSUMER

    • Financial foundations: product ownership
    • Black consumers generally align with the total market in financial product ownership
    • Black consumers generally align with all consumers for ownership of most traditional financial products, but cultural factors shape how they use these tools
    • Graph 6: financial products owned, by Black consumers vs all, 2025
    • Gendered asset ownership shows clear gaps in how Black women and men hold financial products, which reveals uneven access to long-term wealth
    • Graph 7: Black consumers – financial product ownership, by gender, 2025
    • Black Millennials are reshaping financial growth as they lead in saving, investing and borrowing
    • Graph 8: Black consumers financial product ownership – savings account, Millennials vs all Black consumers, 2025
    • Graph 9: Black consumers financial product ownership – investment accounts and personal loans, by generation, 2025
    • Millennial men are emerging as core wealth builders, outpacing peers in investment ownership
    • Looking ahead: multicultural growth may reshape Black consumer behavior as rising mixed-race segments drive faster financial adoption
    • Life stage, family structure and the partnership premium
    • Family structure shapes finances for Black consumers
    • Household values guide financial choices; steady upbringing builds trust in long-term assets, while multi-gen homes face limited options
    • Graph 10: Black consumers financial product ownership – investment account and residential mortgage, by early home life, 2025
    • Graph 11: Black consumers financial product ownership – personal loan, by generations in household, 2025
    • Store credit cards can inspire loyalty for moms; support them with store credit perks that go beyond the purchase
    • Graph 12: Black consumers preferred payment methods – store credit card, by parental status and gender, 2025
    • Graph 13: Black consumers attitudes toward credit cards, by parental status and gender, 2025
    • Bold incentives, pre-approvals, and strong branding in emails can drive store card adoption and deepen engagement among Black moms
    • Income, strain and the balance between control and convenience
    • Black consumers mirror overall trends, but show a slight edge in fintech adoption
    • Graph 14: preferred payment methods (any rank), by Black consumers vs all consumers, 2024-25
    • Card behavior reflects access limits, with only about two-thirds of Black consumers holding a card
    • Graph 15: Black consumers – payment methods used, by purchase type, 2025
    • Cash remains vital for lower-income and older Black consumers, who rely on visible, immediate money to keep tight budgets under control
    • Graph 16: Black consumers preferred payment methods – cash, by age and HHI, 2025
    • Debit dominates in-store spending as Black consumers with tighter finances rely on direct, controlled payments to stick to their budgets
    • Digital wallets and fintech: generational convenience vs trust gaps
    • Over nine in 10 Black internet users have used at least one digital wallet in the past year
    • Graph 17: digital wallets used in the past year, by Black consumers vs all consumers, 2025
    • Digital wallets gain traction with Black consumers for convenience, yet security doubts and choice overload signal room for trust-building
    • Graph 18: Black consumers – digital wallet attitudes and behaviors, 2025
    • Digital wallet attitudes split, with younger adults driven by convenience and older consumers holding back due to skepticism and security concerns
    • Flexibility, credit alternatives and emerging risk cultures
    • BNPL engagement rises with income and employment
    • Black consumers mirror BNPL trends, but lean toward flexibility and small-ticket use
    • Black consumers are similar on all BNPL trends, but lean slightly toward flexibility and small-ticket use, signaling BNPL as a lifestyle cushion
    • Graph 19: attitudes toward BNPL, by Black consumers vs all consumers, 2024-25
    • BNPL is a cashflow optimizer for higher-income Black adults – reframe value, embed budgeting tools, and reward disciplined use
    • Graph 20: Black consumers – attitudes toward BNPL vs credit cards for larger purchases, by HHI, 2025
    • Parents use BNPL to offset costs, providing flexibility without disrupting household budgets
    • Graph 21: Black consumers – attitudes toward BNPL, by parental status, 2025
    • Risk-savvy wealth-builders blend BNPL with investing; add guardrails, credit-building features, and auto-invest nudges at checkout
    • Graph 22: Black consumers – attitudes toward risk-taking and BNPL, by investment account ownership, 2025

  4. PRODUCT, INNOVATION AND MARKETING

    • Nibbles rewards credit card is positioned to win Black Millennial men – a highly engaged pet-owning segment that already invests in premium care
    • PayPal launches “Pay with Crypto”
    • Improve the vibes, improve investment: spotlight on Credit Karma
    • Ease consumers’ load to help them maintain their credit; brands pair promotions with timely “Add to Calendar” reminders

  5. APPENDIX

    • Report scope
    • The consumer
    • Consumer research questions
    • Generation groups
    • Abbreviations

Market Intelligence Made Easier With Mintel

The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:

  • Gain a comprehensive, 360-degree view of the market: Mintel reports blend consumer research, market forecasts, product innovation tracking, and competitive analysis, allowing businesses to see every angle of their industry and identify new opportunities quickly.
  • Make decisions with confidence, grounded in robust data: Each report draws on up-to-date, reliable information from trusted sources and industry experts, ensuring your strategies are based on solid evidence rather than speculation.
  • Benefit from expert analysis and practical recommendations: Mintel’s reports are written by experienced analysts who interpret complex data and provide clear, actionable insights you can trust to guide your next moves.
  • Stay ahead with actionable intelligence on market trends and consumer behaviour: By combining fresh research with long-term market monitoring, our reports help businesses anticipate changes and adapt strategically. So you’re prepared to make informed decisions and drive growth.

What goes into a Mintel Market Intelligence Report?

Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.

The Four Pillars of Our Research

We use a combination of four main research methods when creating our reports, each adding a valuable perspective:

  • Consumer Research: Direct surveys with real people, giving us clear, current insights into what people think and do.
  • Desk Research: In-depth review of trusted data sources. We use this rich database, plus powerful internal tools that track new products and market sizes, to detect trends and guide forecasts.
  • Trade Research: Insights from conversations with industry experts. Their real-world experience helps us understand what’s happening behind the scenes.
  • Brand and Social Media Research: Analysis of online opinions and trends. This lets us spot trends, measure brand sentiment, and capture feedback in real time, adding further depth to our research.

Bringing It All Together

Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.

Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.

For a closer look at a Mintel Market Intelligence Report, take a look at the sample PDF report below:
Please Note: All of the figures, graphs, and tables in this sample report have been redacted.
£ 3,695 (Excl.Tax)
  • Download today with instant access
  • Multiple formats provided
  • Interactive databook included
Add to cart
Report Brochure Methodology Talk to a Reports Specialist

Next Starts Here

Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.

Learn more

Trusted by global industry leaders

VocaLink logo

We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.

As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.

We use Mintel to get a view on where a particular market is going, which can support us in product development and help us identify opportunities or indeed risks, it is a very useful barometer of a market’s potential.

 

Andrew Neeson, Market Intelligence Manager, VocaLink
Wincanton logo

When I’m investigating specific sectors I tend to use Mintel reports for their forecasting, which I’ve always found to be very accurate.

They also offer really broad and deep coverage in their reports. They are very, very detailed. For example, we were able to gain insight across a wide range of business areas from just one report, proving that Mintel is excellent value for money.

So overall, it’s the level of detail and the quality of forecasting that really stand out for me.

Rebecca Green, Market Insight Manager, Wincanton
Epsilon logo

We utilize Mintel Reports, Trends and Comperemedia to mine for insights across the numerous business verticals that Epsilon serves, such as CPG, automotive, telecom, healthcare/pharma, retail and financial services.

By integrating Mintel insight into new business opportunities, we have been able to gain the competitive edge necessary to advance partnerships with global brands and key business players.

For our organization, it’s about depth and breadth. Having one without the other doesn’t enable success in our business.

Virginia Harvey, Secondary Research Manager, Epsilon
Abacus logo

There is no question that Mintel is the go-to resource for the best quality market research, but I did not think it was an affordable option for Abacus Marketing to consider. As a small marketing agency, we only work with a few new clients each year.

However, we have a very high-end consultative approach to our work, so we really do need a partner like Mintel to provide the big agency experience we are always aiming to deliver. Our clients come from an incredibly diverse range of industry sectors, so we obviously need access to market research reports from a very wide spectrum of marketplaces – and that is precisely what we got.

Stephen Taylor-Brown, Managing Director, Abacus
Jackman logo

At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.

Alana Gavin, VP Research and Insights, Jackman

Next Starts Here

Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.

Learn more