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We hear a lot about the Millennial generation these days and it is easy to see why. Born between 1980 and 2000, this generation is comprised of over 80 million people.
Did you know?
- Millennials spend $600 billion a year in the U.S., estimates Accenture.[i]
- It is projected that Millennials will control $7 trillion in liquid assets by 2020.
- By 2025, it is estimated that Millennials will generate 46% of all U.S. income.
Their impact is far reaching and great. So, from a payments industry perspective, what are some things you should be aware of as you serve this group?
- Millennials have forever changed the way we purchase services and or goods. They demand speedy payments that are easy to use.
Always on the go, with device in hand, Millennials can make purchases anywhere/anytime. For example, purchasing a birthday gift while riding a train or paying for groceries without ever touching a wallet or purse. 90% of Millennials say they always have their cell phone with them.[ii] 80% of Millennials sleep with their phone next to their beds.
Not only do companies need to continuously find new ways or deals to attract these consumers, but they must stay current on any new payment technology coming out that makes the experience faster and smoother.
- 52% of Millennials prefer non-traditional payments where convenience is essential.
- 23% of Millennials use contactless payments at least once a week.
- Approximately 50% of Millennials want to use mobile payments to make financial transactions quicker.
- Part of the Millennial digital DNA is to seek out the best deal.
This generation uses their devices to research best prices, fast and cheap shipping, warranties, and so on more than any other. With 24/7 Internet access, they price shop online, even while in your store. When they are ready to purchase, they prefer an integrated experience where they can complete the transaction instantly.
- Nearly 72% of Millennials research and shop their options online before going to the store.
- 57% of Millennials compare prices in store.[iii]
- 68% of Millennials would like an online shopping experience that is integrated and seamless, regardless of channel.[iv]
Millennials are willing to try alternatives if their shopping experience is not up to their expectations. For example, if a product is out of stock or a consumer is unhappy with how a site functions, they may simply move on to another store.
- Millennials are increasingly security-minded. As early adopters of new payment technologies, one might think Millennials assume security is baked in and it isn’t a consideration. However, new studies show security and privacy are top of mind with this generation.
- 54% of Millennials are concerned about the security of smart devices for banking purposes.
- Nearly 70% of Millennials are more likely to trust companies that are technology based and would be more interested in new financial service offerings from Google, Amazon, or Apple, for example, than from their bank.[v]
- Millennials who have started using mobile payments and stopped, 47% discontinued use because of concerns over losing financial data or worried that the network was not secure.[vi]
- 80% of survey respondents said it was “vital” or “very important” that personally identifiable, financial, and medical data be shared only with those whom they have authorized access.[vii]
Wrap Up
The digital Millennial generation continues to transform and drive innovation in payments. Speed, convenience, security and an integrated multi-channel experience are all highly valued. Are you looking to improve or expand in any of these areas? We can help. Contact a Solutions Consultant to learn more.
>>To learn more about TrustCommerce Omnichannel payment solutions, click here.
[i] https://www.spredfast.com/social-marketing-blog/5-stats-millennial-buying-habits
[ii] https://www.theodysseyonline.com/defense-millennials-cell-phones
[iii] Source: AIMIA Inc. “Born this Way: US Millennial Loyalty Survey” ©2012
[iv] http://www.huffingtonpost.com/amit-bhaiya/5-millennial-shopping-hab_b_9408914.html
[v] http://www.inc.com/ryan-jenkins/how-to-secure-millennial-spending-with-mobile-payments.html
[vi] https://thefinancialbrand.com/62004/millennials-mobile-digital-payments/
[vii] http://www.darkreading.com/endpoint/believe-it-or-not-millennials-do-care-about-privacy-security/d/d-id/1322622
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