Cash and plastic bank cards are starting to feel outdated to younger generations.
With new payment mechanisms coming to the fore, like the recently launched Apple Pay, tried-and-true methods are losing their appeal among younger consumers. Cash and plastic bank cards are starting to feel outdated, given the advent of tools that can consolidate bank accounts, payment cards and loyalty programs, all while increasing security. We confirmed this in a survey of 1,000 adults in the U.S. and U.K., conducted from July 24-28 using SONAR™, JWT’s proprietary online tool.
As noted in our latest report, “The Future of Payments & Currency,” just over half of Millennials agree that it doesn’t make sense that we mostly still rely on cash and bank cards in light of today’s technology, compared with a third of Gen Xers and fewer than one-fifth of Boomers and Silents. Millennials are also less likely to reach for cash than older generations, and much less likely to use credit cards. Indeed, a recent Bankrate survey in the U.S. found that as many as 63 percent of 18- to 29-year-olds don’t own a credit card.
With Millennials ready for a more modern, streamlined payments system, brands have the opportunity to capture these consumers by providing alternatives to the status quo that enable seamless, easy-to-track and hyper-secure transactions.