For millennials and Zoomers, their mobile devices are like their lifelines. It should not come as a surprise that they love mobile payments. It’s more convenient than carrying a credit card. When the world can easily embrace accessing their Cox cable packages on the phone to watch whatever channel they like, mobile payments shouldn’t be too hard to digest!
Digital disruption, online shopping, digital currency, and the pandemic are some of the drivers behind this trend. These generations have fully embraced contactless payments, P2P apps, e-wallet services, and the buy-now and pay-later feature. Let’s review some reasons why millennials and Zoomers are so quickly drawn into it.
1: They Prefer Everything Digital
Both these generations are digitally savvy and skeptical of traditional banking institutions. They find digital financial tools more reliable. A majority of them use online banking to manage their finances and conduct business transactions. It’s only natural for these individuals to prefer mobile payments.
2: It’s on Their Phone and It’s Convenient
No matter what generation you belong to, it’s hard to fathom life without a mobile device. For Millennials and Zoomers, a mobile phone is even more precious than a wallet because it is kind of your wallet.
A mobile bill payment ensures that no matter where you are, as long as you have a phone, you can handle all financial matters. Because of this convenience, they are even able to ensure timely payments.
3: Mobile Payments Are Fast
Who doesn’t like quick service? Everyone! Mobile payments are fast even faster than McDonald’s service. Millennials and Zoomers like to have everything at their fingertips. The internet and technology have made it possible to order things there and then. And if they don’t need to take out a credit card from their wallet to make a payment, they will certainly embrace the opportunity.
4: They Are Secure
In this day and age, the only reason for someone to avoid mobile payments is because of security concerns. But thankfully, mobile payments are secure. For millennials and Gen Z customers, security is of paramount importance.
Mobile payments are normally encrypted or tokenized. This lowers the risk of breach. The digital transaction masks this information. As a result, whether you’re a business or an individual, you don’t have to worry about your data being stored or transmitted.
5: Everything Is Traceable
Mobile payments are easy to track. Even a consumer can search the payment history. Since a mobile payment solution connects to your digital wallet, it’s easier to track and control your finances. You can quickly pull up the records on your phone and track your expenses.
You are not bound by time or day to access digital records. Also, no paper waste is involved. For environmentally-conscious consumers, mobile payments are highly fruitful. Next time if someone tells you mobile payments are not secure, tell them about their ability to trace and track all payments!
6: Appealing Reward Programs
Although credit cards have cash back rewards and other perks, digital wallets are more rewarding. These wallets give customers the chance to participate in a rewards program. For instance, if you are using Samsung Pay, you can earn loyalty, gift cards, and membership benefits. In fact, Samsung Pay’s reward program works very similarly to a credit card points-based reward. This means every time someone uses Samsung Pay to make payments, they earn a reward.
7: Going Paperless Is the Trend and the Future
The people from the new generation are expecting money to go digital. We are not really there yet but mobile payments are a huge breakthrough. One in four millennials uses Venmo, PayPal, Google Wallet, and other mobile payment platforms to get paid, pay a friend and pay their bills. As digital wallets become more secure, affordable, and convenient, more and more people will go cashless!
Summing Up
Millennials and Gen Z are undoubtedly influencing the future of payments. Folks from these generations are mobile native and tech-savvy which is why there is a spike in the interest and demand for mobile payments.
They are using mobile payments beyond transferring funds. Merchants are hence looking for ways to offer digital payment options to consumers to fulfill this demand. As the world becomes more digital, mobile payments might as well replace cash and credit cards altogether.