Millennials are the most connected generation the world has ever seen.
With the world at their fingertips, it is only a matter of time before mobile payments become their preferred way to pay online. Right now, 80% of the world’s millennials own smartphones and interact with their phone more than anything or anyone else.
As a spending power, millennials are coming into their own. Today’s young consumers are buying more than ever, consequently changing the face of online shopping (especially for luxury brands, who have seen an enormous uplift in sales in recent years from younger shoppers). But it’s how they’re buying that sets them apart from other generations past – they are bucking the credit card payment trend, instead preferring to use mobile payments to complete online shopping purchases.
A recent survey by Compass Plus found that 27% of millennials see themselves using their mobile phone as their primary payment method in 10 years’ time, as opposed to just 6% when the survey was last carried out in 2016. This means mobile payments are going to become a rule, not the exception, and retailers need to prepare for the inevitable demand.
Millennials are also managing their money on their phones and tablets and are using peer-to-peer payment apps and contactless payments in their everyday lives. They want the same accessibility when they shop online – this is where speed and ease-of-use is crucial.
It’s no secret that providing a seamless shopping experience is key to gaining consumers’ trust and loyalty, but according to Worldpay, 44% of millennials would also pay more for something if the payment experience was better. This should be a no-brainer for retailers – providing smooth, fast and flexible payment options to your shoppers will increase your bottom line.
As the number of connected devices continues to grow, online retailers must have their finger on the pulse when it comes to mobile payments and offer their shoppers choice.
In particular, cross-border shoppers want a frictionless, secure payment experience, personalised for their needs – they want to land on an international site and be able to pay with any payment they like.
And while there is much research on the online spending habits of millennials, it is crucial for retailers to understand the varying characteristics of millennials across the world. The most important focus should be on offering a shopping experience that matches individual preferences and provides localisation – from the first click to the checkout to shipping and returns.
With this considered, coupled with this generation’s need for instant gratification and reduced tolerance of poor online experiences, it is important for any retailer to provide up-to-date payment solutions for the millennial market, and to work with partners who are experts in providing these options.