According to data from a new Fiserv study, when it comes to mobile wallets age really does matter. The study revealed that:
- Only 16% of the general population have used a mobile wallet
- 33% of ‘late millennials’ have used a mobile wallet
- 36% of ‘early millennials’ have used a mobile wallet
So it’s clear that millennials have been quicker to accept this new payment technology than most. It could also forecast a growth in the adoption mobile of wallets in future as the spending power of Generation Z and millennials continues to grow.
Why Millennials Love The Mobile Wallet
Smartphones have become so much more than phones. Like the old Swiss Army knife, one pocket-sized gadget now packs in your digital camera, MP3 player, Facebook, email, PDA - and now your credit card. For a generation that’s grown up with all these tools in their pocket, mobile wallets present just the latest step in everyday convenience.
Another reason the uptake of mobile wallets is higher among millennials lies in levels of awareness of the technology. Recent data from TSYS revealed that found that the number of users likely or certain to enter their information into a mobile wallet is on the rise, increasing from 2015 to 2016. Once a user enters their information into a wallet, they’re then more likely to try it out in-store.
Mobile Wallets Going Mainstream
Although mobile wallets haven’t gone fully mainstream yet, more people are turning to them for a quick and easy way to pay for purchases. Why?
- Better mobile security - mobile wallets are actually safer than carrying a credit card or cash in your physical wallet. Data stored in mobile wallets is fully encrypted, so your credit card details, for example, aren't accessible to anyone but you. When mobile wallets transmit data to make a payment, they never transmit your actual account numbers - they use encrypted payment codes instead. With phones being protected by PINs and fingerprint ID, it’s harder to gain access to your finances via your phone that it is to snatch your actual wallet.
- Flexible spending - mobile wallets can be used for online shopping, as well as in-store. It makes purchases via mobile more convenient, without the need to repeatedly enter tricky card payment numbers on your touchscreen.
- Faster checkout - apps already enable purchases to process more quickly than chip and PIN cards. And there are apps on the way that will let you zip through checkout lanes by using your mobile wallet to pay while you're still walking in the aisles.
- Better value for customers - because loyalty rewards programs can be stored in mobile wallets, it means customers have automatic access to the latest deals that will help build brand loyalty too.