Millennial spending behaviors and preferred payment methods are much different than those of previous generations. According to a study from TD Bank, 41 percent of millennials state they shop online "all the time."
So, how are millennials really spending their money? Before heading out for work in the morning, they may order a coffee or latte through their Starbucks app that will be available for pick-up on their route to their workplace. This added convenience eliminates the need for anyone to spend time picking out items in a store and then wait in a long line at the register – a factor these brands realized to be a hindrance in completing and increasing transactions. This combination of technology and convenience offers millennials a reason to actively engage with their favorite brands and get rewarded for doing so. Everything is digital and designed for convenience.
The mainstream payments ecosystem is beginning to catch up with these types of technology-enabled products and convenient solutions to meet the demands of the millennial population. However, untapped opportunities still exist in the marketplace for institutions to experience success within this customer base.
Companies must continue to work on interoperability of apps. This will require institutions to work together to provide millennials with the ability to do person-to-person (P2P) transactions and access and load funds to their retail applications. Millennials are loyal to the brands that are popular in the marketplace and, more importantly, brands they can trust to provide speed and value.
The millennial population has had a long-lasting and profound impact on the greater payments ecosystem. Everything from the creation of applications to P2P payments was driven by the millennial generation and their desire to use technology for payments with an emphasis on convenience. Turning these learnings into strategies to connect with future generations will make or break a payments provider’s longevity in the market.
This article was first published by Money Inc.