According to a recent survey by VocaLink in the United States, millennials are shunning the use of mobile payments in favor of cash, due to major concerns about security. While the use of mobile payment technology is on the rise in the U.S., with gross payments expected to catch up with other fast-growing countries, millennials are in the percentage that is not expected to jump on the mobile payments bandwagon.
One in four millennials are abandoning mobile payments
Generally regarded as anyone born from the early 1980s to the end of the century, millennials are becoming increasingly aware of mobile payments, but have serious concerns about the security involved. The survey from VocaLink has shown that around one in four millennials is abandoning the use of mobile payments, with security concerns as the main reason why. That simple element of trust was one of the main priorities for millennials when it comes to using mobile payments, especially when offered by third-party providers such as Google and Android. Security was also a major concern, as many felt that their mobile wallet accounts were not as secure as they could be.
Bank services would be preferred by millennials
However, not all is lost, according to the VocaLink survey. Of the 5,000 people surveyed, around seventy percent said they would use mobile payment options more if it was run by a more trusted provider, such as their banks. Moreover, many also said that improving the security features with biometrics instead of chip and PIN would be more acceptable to them. This makes it clear to researchers that the millennial generation wants to see further innovations in mobile payments and trust from mobile payment providers before returning to mobile payments as a more acceptable method of payment. This would be a beneficial thing to many mobile payments providers, as the millennial generation has a need for instant gratification, and the ease and reliability of instant mobile payments are appealing to them.
Huge numbers of millennials had problems
Currently, around fifty-two percent of all mobile payments users around the world are millennials. However, within that demographic, more than 85 percent have had serious problems using the contactless payment methods involved. With their heavy investment in the latest smartphones and gadgets, millennials make for a critical part of the future of mobile payments and have always been promoted as most likely to use mobile payments technology.
Millennials are pushing the advancement of mobile payments
According to Cara O’nions, VocaLink’s director of marketing and customer insights, millennials are the main demographic that are pushing the mobile payments industry to provide more high-quality innovations as they are currently unsatisfied with the options available in the market today. Despite payment preferences differing around the world, often based on location, in almost all areas, millennials are looking for something that produces substance over style and fashion. They want a technology that gives them seamless and secure transactions instantly, across every medium of sales.
Mobile wallets could be the future of payments
Mobile wallets offer the consumer a convenient way to make payments that are also fast and efficient. Mobile payments and contactless payments allow for seamless integration of loyalty rewards, events, alerts, and notifications that mean they are always fully updated with the latest products from their favorite retailers. For retailers, the mobile wallet allows them to engage with their customers on a unique level, where the in-app experience that begins with the first action in a retail journey continues beyond what was once the norm, to notifications, reminders of upcoming dates, digitally archived receipts and a real-time notification of their current loyalty points balance.
The increased security offered by banks with their own digital wallet options is quickly becoming a strategic focal point of millennials, as the banks are more trusted service providers. All it needs is for the other service providers to catch up and adopt the higher security levels required by millennials to bring them back into the mobile payments market, and further increase the already growing trend of using mobile payments for everything from cars to coffee.
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