Millennials Turning To Digital Payment Technologies

Millennial consumers, along with their counterparts from Generation Z, have increasingly begun to turn to digital-first technologies to meet their banking and payment needs, with mobile methods being particularly popular among them. A study by finds that 38 per cent of Millennial consumers used mobile wallets to pay for their purchases in the month leading up to the survey, compared to 22 per cent of Baby Boomers. Millennials are also more likely to complete their purchases via debit cards rather than credit cards, remaining wary of incurring debt and credit-related fees. Sixty-three per cent of Millennials use debit cards more often than credit cards. This suggests that Millennials are looking for swift, digitally connected but also budget-friendly methods of payment. Meanwhile, these same young consumers are also more likely to embrace embedded finance tools such as buy now, pay later (BNPL) solutions. Younger consumers were early adopters of BNPL and now 61 per cent of Millennials tap BNPL methods to meet their payment needs. BNPL methods can be attractive to younger consumers in particular because they do not come attached with the same fees as other payment methods such as credit cards. These tools can also be added to eCommerce sites’ checkout experiences, making them convenient for younger consumers who have become used to swift, one-click payment experiences.