Millennials will push the transition to new methods of payments.
As outlined in our recent trend report The Future of Payments & Currency, Millennials will push the transition to new methods of payments—they’re significantly more open to new transaction technologies and more apt to see the potential benefits. A July survey we conducted in the U.S. and U.K. found that among people who have not used a mobile wallet, 18- to 34-year-olds are the most enthusiastic when asked about potential benefits. These consumers are more interested than others in using a phone to pay if it makes transactions faster, makes splitting bills easier, can replace cash in low-denomination payments and helps keep track of purchases.
Still, around half of Millennials don’t yet express interesting in using mobile payments, regardless of the benefit. By addressing Millennial needs initially, brands can establish utility, trust and reliability with a generation that will eventually bring more reluctant consumers into the fold. Peer-to-peer payment app Venmo, for instance, is popular among Millennials in part because of its social element. The app is seeing rapid growth: In the third quarter, Venmo recorded a payment volume of $700 million, a jump of 50 percent from Q2, with parent company Braintree saying this makes it one of the most successful mobile payment apps in the world.