Other factors that influence payment methods are: income, where the goods or services are purchased, the cost of the payment method, and finally, what is being paid for.

Roux was reporting on research conducted on behalf of the Nedbank Group, of which Old Mutual Bank is a division. Eight focus groups were held in Gauteng among black and white, male and female bank customers with at least one transactional bank account ? credit or debit card, cheque, current or savings account. Respondents were in age groups of 18-24; 25-34 (in lower and higher earnings brackets); and 35-49 years.

Customers want convenience

"Customers basically want convenience ? and this means lots of things to different people, based on the benefits they derive from their chosen payment methods," says Roux. "Convenience can mean security, ease of use, saving money, time and effort, fitting in with lifestyle and income, flexibility ? in a nutshell, limiting the hassle factor for that person."

Cash vs debit cards

Of all the payment means offered by banks, cash remains the most versatile and frequently used. It's particularly favoured by 18-24 year olds and the lower income 25-34 year olds. Older customers, however, have concerns about cash and security.

They prefer using debit cards, which are most favoured by the higher-earning 25-34 year olds and the 35-49 year olds. Customers enjoy the security and knowing how much money is in their accounts, saying that debit cards are widely accepted and quick and easy to use. Those who dislike debit cards mention high charges ? "a swipe is a charge" ? plus inconvenience and embarrassment when machines are offline.

Debit orders still popular

Debit orders (often confused with stop orders) are mainly preferred by the lower income 25-34 group. Many people across the survey, however, enjoy using debit orders to save time, money and effort and to ensure that regular payments are taken care of conveniently and timeously. Debit orders are mainly used to pay large amounts, such as bonds and car installments, and also for insurance, gym memberships, school fees and numerous other items.

There was limited use of internet transfers across the sample (highest usage was among 25-34 year higher earners) but the internet is nonetheless the most aspirational method of payment. Those using this service enjoy the 24-hour banking access and the ease and control of making multiple payments in one sitting. Non-Internet customers perceive it as "difficult and expensive", however.

Credit cards and convenience

Survey respondents in the 18-24 age group did not report using credit cards (apart from two respondents) but there was high usage in the 25-49 age groups. The main benefit is "convenience", as well as immediate spending ability, access to large purchases like furniture, and bonuses like Voyager miles. Negative perceptions about credit cards, says Roux, include fears of debt and overspending, being reported to credit bureaux, high interest, and "spending money that you don't have".

Cheques were the least popular payment method for the majority of respondents. The 18-24 year olds said cheques were "so outdated" and "so old school" while other respondents cited security concerns, inconvenience and the refusal by some merchants to accept cheques.

The least popular ways to pay

Telephone and cellphone banking were used least frequently of all the payment methods. Bank transfers were hardly used. Garage cards were also low on the list, although higher income 25-34 year olds found them "safer" and "useful for budgeting".

"Peoples' monthly bills and expenses cover everything from groceries, entertainment and student loans to vet bills, tithing at church and stokvels," concluded Roux. "The survey showed that some respondents even budget for traffic fines.

"When it comes to paying for all these goods and services, customers tend to select payment options that are in line with their life stages. And convenience ? which means different things to different people ? is top of the list.

Be informed about payment options

"However, many customers don?t seem very well informed about what their payment options really are and how they can make their banking more convenient. While there are numerous information sources ? pamphlets, TV, adverts, call centres, bank statements and so on ? information about payment options does not seem to be getting through.

"Banks have to communicate and engage with customers in a manner that's relevant to each life stage. Information must also be current ? there's a clear rejection of cheques across the sample, for instance.

"Information must be easy to understand and easy to digest. Customers want bite-size information, in the language they use every day, that clearly outlines how payment methods actually work and how they can benefit the customer."