A majority of the nation’s younger millennials are paid by direct deposit, but there is a stark contrast between W-2 employees and gig workers, according to a recent survey by payment solutions provider Nacha. The company commissioned a poll of 700 U.S. adults between ages 22-34 and found that 97% of respondents had bank or credit union accounts, with 83% receiving their pay by direct deposit. However, while 88% of W-2 employees used direct deposit, only 47% of gig workers were paid that way.
The survey found that 71% of respondents primarily kept their money in a bank account. Almost all had deposit accounts and the vast majority had savings accounts. Seven in 10 used direct payment for bills at least once a month. Fifty-six percent of gig workers primarily kept their money in bank accounts but the remainder stored it in other nonbank payment app alternatives. The top-use cases for direct deposit were salary/wages (82%) and taxes/other refunds (53%). Among those with direct deposit, the top three use cases for paying bills with direct payment were utilities (53%), rent/mortgage (48%) and credit cards (44%).