EPOS Software Developments – Millennials and Payment Developments. The payments space is one of the most exciting, rapidly evolving elements of the financial system. So it makes sense that the tech-savvy millennial generation would be central to its ongoing development.
In a recent report produced by VocaLink, titled ‘The Millennial Influence’, this generation is defined as those born between the 1980s and 2000. More than 5,000 people took part, spanning the 18-24, 25-29 and 30-35 age brackets. The findings provided some fascinating insights into what’s important to these demographics, particularly regarding financial services and payments.
A life rooted in technology
To gain an understanding of the habits and desires of millennials, it’s first crucial to recognise the importance of technology to this generation. Virtually all participants in the VocaLink study (98 percent) used a smartphone. PCs and Macs are still some way ahead of tablets. With adoption rates of 80 % and 57 % respectively. While one in five millennials (20 percent) use wearable techs like the Apple Watch or Samsung Gear. Their familiarity with technology means millennials are comfortable with online banking and payments.
As far as payments are concerned, the report concluded that cash “is no longer king” for millennials. Cards have now overtaken cash for all forms of the transaction except person-to-person payments, where 48 percent of respondents relied on cash and 44 percent preferred cards.
EPOS Software Developments – Mobile payments
Given the ubiquity of mobile phones in modern society, it would be reasonable to assume that millennials would waste no time in using their phones to complete transactions. However, the research suggests that many consumers are hesitant to embrace the mobile channel for payments.
More than half (52 percent) of those surveyed by VocaLink were currently making mobile payments. While one in four had tried out the technology but stopped using it, mainly because of security concerns. Seven out of ten respondents (70 percent) said they would be more likely to use a new mobile payment service if it came from their bank.
Accenture’s 2016 Consumer Digital Payments survey provided similar findings. It suggested that consumers still rely on traditional payment methods, despite the availability of new digital channels.
With so much potential for growth and further innovation in the market, there are huge incentives for banks and specialist providers to prove to consumers that mobile payments are easy, reliable and secure. Many customers will wait to see that this channel offers something genuinely valuable and unique before committing to it.
Technology is transforming the checkout experience. Both regarding the physical customer experience and the insights, it can deliver to retailers. To be truly successful, a retailer must implement developments that primarily provide positive customer benefits. Technology needs to be truly innovative and help give your business that X factor. CES Software cares about your business, one of the ways we show this is by offering bespoke EPOS Software Developments. All we need to know are your thoughts and what you would like to do with our software. We can help provide appropriate solutions that will contribute to enhancing your business.