Young consumers usher in a new era of “tap to pay” experiences.
Chances are 2018 is the year you will join the mobile payment economy if you haven’t already. Even if it’s your first time experiencing the magic of tapping to pay for groceries or instantly divvying up the restaurant bill with friends, the convenience of emerging mobile payment technology will make you a believer.
Millennials and Gen Z are leading the charge toward the ease of mobile wallets. The biggest generation in American history, Millennials are now a quarter of the U.S. population. Gen Z will make up 40% of all U.S. consumers by 2020, adding more momentum. Both segments have grown up in an always-on digital world, with the internet and smartphones rarely out of reach. Their on-demand mindset is fueling a surge in digital assistants and new technologies like NFC (near field communication) with the potential to transform daily life.
With all the major players now offering a mobile wallet — including Apple Pay, Android Pay and Samsung Pay — the foundation is in place for enormous growth. In fact, it’s already happening. 46% of all retail purchases were made by mobile payments in the U.S. alone in 2017, with 64% of consumers planning to use a mobile wallet in 2020.
Retailers are expanding their payment capabilities accordingly, from new payment applications to chatbots to no-scan credit cards. As consumers demand all their payment information in one place, Open Bank apps are enabling a single consolidated view of credit and checking accounts. With Millennials comprising a huge portion of retail revenue in the U.S., it’s reasonable to expect retailers will keep rising to their demands, driving adoption of mobile payment among the shopping public at large.
The upshot? Forward-looking brands need to embrace mobile payment now or risk being passed over by a generation of digital natives — and, sooner or later, their parents.
Peter Brennan
Member, Board of Directors
Sources:
https://www.mobilepaymentstoday.com/articles/5-mobile-payment-trends-to-watch-in-2017/
https://bizooku.com/2018-year-mobile-payments/
https://www.accenture.com/us-en/insight-banking-future-payments-ten-trends
https://obamawhitehouse.archives.gov/sites/default/files/docs/millennials_report.pdf (page7)
https://www.sighted.com/blog/5-payment-trends-in-2018/