US Millennials Choose Security for Instant Mobile Payments
VocaLink, the global payment partner to banks, corporates and governments, today launched “The Millennial Influence”, a report examining the payments behavior of millennials in the United States.
The research, showed that millennials were more risk averse than expected with one in four having ditched using mobile payments applications due to fear of a security breach.
Actually, 70 percent of US millennials would be more likely to use a new mobile payment service if it was provided by their own bank, citing their bank as the most secure option.
Two thirds of this group of millennials are more open to finger print biometrics than outdated chip and pin, due to the increased security.
In fact, nearly three quarters claim that they would like to be able to make instant mobile payments to both businesses and people regardless of their banking provider out of shear convenience and familiarity.
Cara O’Nions, Director of Marketing and Customer Insights at VocaLink commented, “Surprisingly, the element of ‘trust’ and ‘security’ was a priority for many of the millennials we spoke to, and as a result felt strongly that their bank was the preferred provider of payments technology. However, it is clear they still want to see further innovation from all payment providers, to respond to their need for ubiquitous and reliable instant mobile payments. At this stage, while a number of fintechs are still in the process of developing and fine-tuning their products and services, the banks have a substantial head start to provide or support a superb customer experience.”
The report also explores the existing footprint of mobile payments technology in the US. Mobile payments are used by 52 percent of millennials, despite the fact that 86 percent of millennials using contactless mobile payments have encountered problems when attempting to pay for something.
David Yates, CEO at VocaLink concluded, “This research into US millennials attitudes’ to payments is part of our longstanding commitment to play a leading role in the discussion about the future of payments systems globally. As providers of the infrastructure through which so much of business and personal commerce is conducted, we are uniquely well placed to explore and offer insight on emerging trends and behaviors in the way people and organizations want to access and move their money, as well as provide the technological solutions to the demands of the consumer.”