With over $170 billion of purchasing power, Millennials are a force to be reckoned with. The new generation is transforming the payment industry by demanding more mobile, non-traditional payment options. They see value in convenience, mobile support and ease of use of new payment solutions. Adapting to these demands is integral to the future success of many companies. Here are 3 ways that Millennials are shaping the payment industry and how you can benefit.
Moving Away From Desktops
It’s evident that mobile devices are leading the way in shopping, payments and more. As digital natives, 60% of Millennials prefer the convenience of purchasing on a mobile device. This has substantial benefits for merchants as mobile commerce (m-commerce) provides more opportunities for customers to shop and purchase where they want, when they want and how they want.
The Millennial generation prefers businesses that make them feel valued. Merchants should ensure their m-commerce store is customer centric, consistent across channels and highly secure. The payment option and checkout process need to be seamlessly integrated and fully responsive. Simple to use, socially integrated payment solutions are the way of the future. Around 50% of Millennials expect mobile friendly payment options and are quick to take their business elsewhere if their mobile customer experience is frustrating.
Growth of Mobile POS Systems
The mobile Point-of-Sale (POS) industry is expected to far surpass $2 billion by 2015. One of the key drivers of the mobile POS trend is the Millennial generation. Cash is nearing obsolescence and Millennials are demanding new payment options that allow them to avoid traditional credit cards and offer more customized experiences.
The growth of mobile POS systems is also coming from the Millennials’ need for convenience. In high-service environments, employees are able to actively sell and complete payments on the shop floor instead of waiting for customers to come to them. Nordstrom launched their mobile POS system and as a result increased sales by 15.3%. Organizations that want to capture the Millennial market need to consider ways to make shopping more convenient for both the retailers and the shoppers.
Credit Card Adverse
Although credit cards are currently the most widely used payment method, e-wallets and other payment methods are on the rise. The Millennial generation has been known to distrust big businesses including credit card companies. Global events such as the 2008 US financial crisis changed how they view money and, more importantly, how they feel about using credit. Plagued by the weak job market, high student loan debt and fear of taking on more debt with credit cards, many have turned to alternative financial services with easy to understand fees, such as prepaid credit cards. Approximately 63% of Millennials don’t own a credit card, which demonstrates the need for merchants to offer non-credit card payment options, such as FuturePay.
To capture the Millennial market, businesses need to offer convenient, mobile supported and easy to use payment solutions. This generation has immense purchasing power and by tapping into convenient mobile and card-free payment options, you can increase revenue substantially for your business.