Throughout history, generation after generation has had a major impact on society in some way. With the baby-boomers, it was all about redefining the traditional social values, while Generation X, as they later became known, reinvented what it was to be young in an age of new and emerging technological ideas. However, the millennial generation changed not only how people communicate but started to shape the future in an increasingly digital world.
Millennials are the driving force in retail payments
The coming of age of the millennials, as the digital era was taking shape, paved the way for new levels of technological advancement in both industry and society. The forecasting of millennial trends has been the subject of countless studies, in attempts to predict their influence on the consumer and business markets of the digital age. In the United States alone, more than 80 million millennials were born between 1980 and 1999, proving that this generation is to be the main focus on analysis and research in modern-day marketing.
The millennial generation is more connected than anyone is ever, with their smartphones and digital technology bringing the world to their fingertips. Almost 80 percent of millennials own smartphones and interact with their smartphone more than with anything or anyone else within their average day. With modern technology, they can keep in touch with friends, arrange meetings, read the news, go shopping, and run a business, all without even leaving their house. Millennials maintain their contact with the outside world through their heavy use of digital technology.
Is cash going to disappear in the future?
Now, with all smartphones being able to carry mobile wallets, and the elimination of the need to carry cash with them, predictions for Millennials making mobile in-store payments have suggested a total spending of 503 billion dollars by the year 2020. The sheer number of Millennials shows that they make up a huge portion of the buying population, and mobile phones are their main spending platform. Coupling their need for instant gratification with a low tolerance for poor online and in-store customer experiences means that businesses, both online and in physical stores, have to make their options attractive to this burgeoning market.
On average, only around four percent of the global money movement in 2016 was made up of cash, and this downward trend in the use of cash spending is only going to increase throughout the coming years. As the need for better digital payment systems has been demanded, payment providers have started using cloud-based services, image, and proximity-based payment systems, and many other emerging technologies to allow customers to be able to make payments to other mobile technology devices as point-of-sale (POS) terminals.
Security is the biggest bar in mobile adoption
Despite the rising popularity of mobile payments, there are still barriers that service providers have to face, the most important of which is payment security. The hesitation of many consumers in adopting this mobile payment technology has been caused mainly by their concerns over the security of their payments in an ever-troubled world of digital fraud. The recent surveys into millennial spending habits have shown that around 25 percent of millennials are expected to abandon the use of mobile payment options because of concerns over security.
This has forced the fintech companies to look into further expanding the research into mobile payment security, and integrate some new and more advanced solutions. Retinal scanning, facial recognition, fingerprint verification, and many other new and old ideas are coming to the fore, making mobile payment security look more like science fiction than ever. However, with fingerprint and selfie verification already out there, and biometric security systems looking likely to expand globally to become the norm, science fiction has already become “science fact”. And despite adoption challenges, these are all expected to become everyday security features over the next few years.
Checkout lines will be a thing of memories
Soon, you may be able to go to your favorite store, gather up all your items, and walk out without ever seeing a checkout. Modern payment technology is geared towards offering the customer a seamless shopping experience and making the whole business of shopping as simple and fast as possible. Modern peer-to-peer (P2P) payment options show how the millennial generation is driving the development of new technology to make their lives easier and simpler. Moreover, with these advances in retail technology, they have increased the Millennials’ expectations for delivery speeds and e-commerce fulfillment on shipping and service. Now, with some online stores, you can search for your item, pay for it, and have it delivered in as little as one hour if you are inside their “prime” delivery zones.
The millennial generation is the major influence in the mobile payments arena, and the next few years are expected to produce a bigger adoption of mobile technology. The high use of mobiles for everyday things like shopping in the millennial generation has pushed digital and mobile technology into almost every aspect of life. In fact, it is so well integrated into everything people do that the mobile phone is expected to become the new unique identifying device, with everything from fingerprints, retinal scans, and biometrics incorporated into it, as well as your Social Security Number.
Personalization is the future of marketing
However, it is important to remember that, while there is a lot of research and study data into the habits of Millennials, not all are alike, and the real focus should be on making the experience more personal than generally fast and efficient. As more people move into the world of mobile payments and adopt the modern payment and security technology that many millennials are already using, the businesses that will stand out in the markets of the future are the ones that make those fast, seamless payments completely personalized to every individual customer.
Related articles published in Mobile payment :
- Why the mobile wallet should be a fundamental part of your retail strategy
- Five current payment challenges that travel agents have to overcome
- Millenials and mobile payment
- Payments: What U.S. entrepreneurs should learn from the global marketplace