Study: Millennials Concerned about Credit Card Security

A recent study released by PayPal revealed new views on the use of credit cards and digital payments.

The consumer survey highlighted that over 34 percent of Millennials who participated in the research found credit card technology to be “old school” (the term used in the survey).

“Many mobile payments skeptics argue [there’s nothing very painful about swiping a credit card] at a point of sale terminal — although entering 16 digits into a mobile webpage can be extremely painful,” wrote Greg Sterling from Marketing Land.

While this does not clearly establish how the age group uses plastic cards on a daily basis, it does suggest that the payment method could be losing traction and popularity, as consumers are exposed to other options, such as bitcoin and digital wallets.

Partly to blame for the downward trend is digital payments. In a US Federal Reserve survey conducted in March 2015, over 24 percent of responders claimed to have used their smartphone for purchases last year. This includes any of the following mobile options: in-app payments, P2P transfers to a third party or merchant, and offline POS transactions.

When it comes to security, roughly 70 percent of all demographics- Millennials, Generation X, Boomers and Matures, agree that news coverage on data breaches expand on risks associated with credit cards.

“Finally, Millennials say they are more inclined to trust technology companies in the PayPal survey. It’s somewhat problematic that there’s no alternative for comparison purposes — banks or retailers are implied,” explained Sterling.

“But this raises the prospect that Apple or Google will be more trusted as a payment broker in the future than Visa or Amex even though banks and credit card issuers behind the scenes are absolutely critical to the success of the digital payments ecosystem.”