Millennials seem to be the talk of the town lately. Understandably so, they’re the largest generation in the US, and they’ve been making serious waves in traditional industries. Specifically, they’re influencing changes in the banking and financial world. Despite the changes, it may surprise you to learn the millennials preferred payment type.
Millennials are still fans of traditional payments
Despite being totally plugged in most of the time, traditional payments are still the most popular among millennials. More than half of millennials still prefer to get paid in cash. It’s still the easiest, most convenient, and most secure way to accept payments. It’s also universally accepted and discourages impulse spending which allows for millennials to stick to their strict budgets. Oh, and there are no processing fees.
Obviously, cash isn’t an option in the online retail world, so it’s good news that millennials still use checks and credit cards daily. In fact, over 85% of millennials have written a check in the last three months and over 80% use credit or debit cards to make purchases.
Keep in mind, however, that most millennials prefer debit cards to credit cards. Debit cards have many of the same benefits as cash without making a trip to the ATM but also ward against debt, which many millennials don’t want.
Good news for online retail: mobile payments are on the rise.
Millennials trust payment apps like Venmo, PayPal, Google Wallet, and Square Wallet. Almost 100% of millennials use a smart phones and social media daily which has fostered a sense of security to accept and send payments with their mobile devices.
These peer-to-peer payment applications offer a free way to transfer funds quickly and easily. They allow real-time transfers anywhere in the world. While these digital wallets haven’t trumped traditional payments all together yet, they are certainly quickly becoming millennials preferred payment type.
Digital payments are the future for millennials.
Millennials are embracing digital payments more than any other generation before them due to their instinctive comfort with mobile devices. These payment apps offer the convenience and instant gratification that millennials are after. And it’s apps like Venmo, PayPal, Google Wallet, and Square wallet that are the driving forces for a cashless society. Millennials prefer ecash.
Millennials Preferred Payment Type
While these digital payments are on the rise, until these payments can occur in real-time, paper payments are still the millennial preferred payment type.