How Are Millennials Handling The New Payments Environment?
In the past few years, the number of options consumers have to make everyday payments with their credit card accounts has changed substantially. Not only has EMV become commonplace, but mobile payments are starting to gain a foothold in the sector as well. Meanwhile, a large and growing number of millennials have come of age during this time, and it’s expected that their payment habits will shape the industry for potentially decades to come.
These days, relatively small numbers of millennials own credit cards, at least in comparison with previous generations, according to a report from Due.com. As a consequence, it might be incumbent upon both payment processors and merchants themselves to encourage card-based transactions in general. Experts believe the key to doing so may be the ability to highlight or offer benefits above and beyond what older generations might have expected. Often, that’s already offered on alternative payment processors like Google, Apple, Amazon, PayPal, and so on.
“I’ve never owned nor have ever wanted to own a credit card,” Kristian Rivera, 25, a digital marketing specialist in New York City, told the site. “It wasn’t really a decision that I made, but growing up, I was warned of the risks of having a credit card and advised to put off getting one as long as possible.”
Millennial phone use might be able to drive mobile payment adoption forward.
Why is that effort vital?
The reason why millennials may be a little wary of card-based purchases is that they’ve already come to expect more out of a transaction, according to Qualtrics. Right now, millennials are 16 times more likely to use Apple Pay and Android Pay than baby boomers. They’re also about six times more likely to utilize the money transferring service Venmo than both boomers and Gen-Xers combined.
Moreover, 80 percent of millennials say they use cash on a regular basis, ahead of even debit card use, the report said. Finally, they’re still five times more likely to use cash than a mobile platform.
Bridging the gap
With all this in mind, it’s vital that millennials be brought into the fold of today’s more secure payment platforms, according to Shopify. Nearly all millennials in the U.S. now have smartphones, and almost as many use social media, which is why experts believe mobile platforms may be the wave of the future in the payment processing industry. For instance, in Europe, where EMV and mobile are already more established, more than half of young adults use mobile payments these days, and about 80 percent say they’d be more interested in emerging services on those platforms on an ongoing basis. That compares favorably with numbers for the older generations in Europe.
The more merchants can do to get onboard with EMV and mobile payments, the more likely they will be to not only see more secure transactions, but potentially also connect with younger shoppers. Consequently, it’s vital to start the process of obtaining EMV- and mobile-enabled point-of-sale devices in the near future.
**Credit to Sterling Payment Technologies, https://www.sterlingpayment.com/news/industry-news/merchant-processing-industry/how-are-millennials-handling-the-new-payments-environment/