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Survey Monetary Incentives: Digital Payments as an Alternative to Direct Mail
Reading: Tiffany S., Neman, Dykema Jennifer, Garbarski Dana, Jones Cameron, Schaeffer Nora Cate, and Farrar-Edwards Dorothy. 2022. “Survey Monetary Incentives: Digital Payments as an Alternative to Direct Mail.” Survey Practice 15(1): 1–7. doi:10.29115/SP-2021-0012.
Overview
This study looks at whether digital cash payments, like Venmo or Zelle, could be a good alternative to mailing cash or checks as incentives for online surveys. Traditionally, surveys use mailed cash to boost response rates, but online surveys often lack mailing addresses, making this tricky. The researchers ran a small web survey with 52 young adults to see if they preferred digital payments over mailed cash for a $5 incentive. They found that 90% picked mobile apps, with Venmo being the top choice (85%). Digital payments are cheaper and easier to send, but respondents need to use the apps, and more research is needed to confirm if they increase response rates. Here’s a detailed yet simple breakdown:
What They Did
- Why They Did It:
- Surveys often offer money to get more people to respond, usually via mailed cash or checks. But online surveys make this hard because researchers often don’t have respondents’ addresses.
- Alternatives like e-gift cards (e.g., Amazon) are common, but they’re not as appealing as cash. Digital cash via mobile apps (Venmo, Zelle) is growing in popularity—half of Americans used digital payments by 2017—but no one has studied them for survey incentives.
- The goal was to see if people prefer digital cash over mailed cash and whether it’s a practical option for online surveys.
- The Plan:
- Who: 52 interviewers (mostly young, aged 19–36, median 21) at the University of Wisconsin Survey Center. They were part of a larger group of 216 invited via email in February 2021, with a 25% response rate.
- What: A short web survey (on an unrelated topic) using Qualtrics. After finishing, respondents picked their preferred way to get a $5 cash incentive from five options: Venmo, Zelle, Google Pay, Apple Pay, or mailed cash (see Figure 1 in the study). They also provided contact info (e.g., Venmo username, email) for their chosen method.
- What They Checked:
- Which payment method respondents preferred.
- Why digital payments might work (e.g., cost, ease of delivery).
- Potential downsides (e.g., needing app access).
- No Response Rate Test: This was an exploratory study, so they didn’t test if digital payments increased survey participation, just preferences.
What Happened
- Preferences:
- Overwhelming Choice for Digital: 90% of the 52 respondents chose a mobile payment app over mailed cash.
- Venmo Dominated: 85% picked Venmo, making it the clear favorite. The rest chose other apps (Zelle, Google Pay, Apple Pay) or mailed cash (about 10% total for mailed cash).
- Why This Matters: The strong preference for Venmo suggests young people are comfortable with mobile apps and might find them more convenient than waiting for mailed cash.
- Advantages of Digital Payments:
- Cheaper: No costs for postage, envelopes, or labor to stuff mailings (unlike mailed cash, which Brown et al. (2016) say includes these expenses). Mobile apps like Venmo usually have no fees for sending money.
- Easier for Online Surveys: Digital payments don’t need mailing addresses, which are often missing for online samples (Birnholtz et al. 2004).
- Faster: Payments can be sent instantly via email or phone number, unlike mail delays.
- Downsides:
- App Access Needed: Respondents must have and use the chosen app (e.g., Venmo). Not everyone does, especially older or less tech-savvy people.
- Learning Curve: Researchers may need time to learn how to use these apps and set up payments, which could add minor costs.
- Limited Sample: The study only asked young interviewers, so results might not apply to other groups (e.g., older adults or non-tech users).
- No Response Rate Data: They didn’t test if digital payments boost survey participation, so it’s unclear if they work as well as mailed cash in practice.
What It Means
- Key Points:
- Young people strongly prefer digital cash payments (especially Venmo) over mailed cash for survey incentives, with 90% choosing mobile apps.
- Digital payments are a promising option for online surveys because they’re cost-effective, don’t require addresses, and are quick to send.
- However, researchers need to ensure respondents use the apps, and more studies are needed to see if digital cash increases response rates like mailed cash does.
- Why It Worked:
- Digital payments are part of everyday life for many, especially younger people. By 2017, 50% of Americans used digital transactions, up from 40% in 2015 (Greene and Stavins 2018).
- Venmo’s popularity likely comes from its ease of use and familiarity among young adults.
- The $25 incentive amount is typical for surveys and likely felt meaningful enough to show true preferences.
- Tips for Survey Researchers:
- Consider offering digital cash via mobile apps like Venmo for online surveys, especially for younger or tech-savvy groups.
- Offer multiple app options (Venmo, Zelle, etc.) to cover more users, but include mailed cash as a backup for those without apps.
- Test digital payments in larger studies to see if they boost response rates compared to mailed cash or e-gift cards.
- Save money by skipping mailing costs, but budget time to learn the apps.