A recent statistic from ETA’s Transactions Trends states that 21% of young Americans (aged 23 – 34) say that they will make all or most of their purchases with cash, which is down 18 percentage points from five years ago. Among all age groups, millennials have shown the most significant drop in cash use. In contrast, older individuals (aged 35 – 54) saw a two-point drop, and those 55 and older saw a six-point drop. Could a mobile payment system boom be the reason that many millennials are going cashless?
Millennials might be cashless, but use cases to support mobile payment systems are lacking
Millennials are leading the way in using mobile payment system technology to accept mobile payments through NFC, but there is not enough evidence in use cases for support. There is, however, sound evidence that points to smartphone users being predominantly millennial, and mobile wallet adoption is on the rise thanks to smartphone users. Payments Source recently shared their thoughts on mobile wallet users.
How to speed up mobile payment system acceptance
A recent guest post from ETA highlighted the ways in which the payments industry needs to overcome current obstacles to reach mainstream adoption of new technologies on the horizon. Mobile payments might be a tough sell to the U.S. market, so the industry needs to overcome:
- Creating a consistent user experience
- Increasing the value-add of mobile payments
- Reducing consumer concerns about security
As mobile payment system technology continues to develop, so to will technology that supports mainstream adoption. It’s evident that mobile will become more secure as time goes on and consumers and businesses adopt new payment solutions.
Mobile payments are going to continue to be a way of everyday life, especially with the introduction of new tech. As the industry evolves, select a processor like Payline that will help you grow and be successful.