Millennials, the drivers of change?
The 2016 PayExpo conference presents one of the best chances to meet some of the biggest game players in the payments community
One of the key words that seemed to be passed around from speaker to speaker was the “millennial generation”.
Several companies, such as GoHenry, Payfriendz and Loot, now tailor their products specifically to the tech-savvy generation as they believe they are the drivers of change. Unlike the banks who offer youth bank accounts that are often just copies of adult bank accounts, these companies have used technology to find value in a new market segment.
It is no wonder millennials are the target of so many FinTechs when a Prepaid International Forum (PIF) survey just found that the majority of consumers younger than 44 plan to make mobile phones their main method of payments within the next few years. Out of the surveyed consumers aged between 18 and 24, 49% report already using mobile payments.
The millennials have become the most technologically advanced generation, are more willing to experiment and have a completely different approach to banks and banking services than the older generation.
Suresh Vaghijani, the executive Vice President at Global Processing Services, believes that the reason behind this major difference between millennials and the rest of the population comes down to trust and habit. The younger generation have been brought up to trust big brands such as Apple, Google and Facebook whilst the older generation are accustomed to banks and their respective branches.
The older generation are able to use mobile banking but prefer to go over the counter as they are familiar and trust those services. Engrained customs are hard to change which means that the older generation are less prone to shift their habits.
Although it may seem that the younger generation are more inclined to change payment methods, impetuses such as the decision of TFL to no longer accept cash on buses, also pushes the older generation to face and accept change.