Millennials are often referred to as the target demographic for Fintech companies and entrepreneurs. This particular group of people has grown up in a world where physical payments are of less significance, and technology is widely available. But a study by GOBankingRates seems to contradict this story somewhat, as they mentioned how 58% of millennials still pay with cash. However, mobile peer-to-peer apps are gaining in popularity as well. An interesting scenario for Fintech players to figure out indeed.
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Cash And P2P Payments Are Popular Among Millennials
There is no denying millennials are far more aware of their financial status than most other consumer demographics. Although this group of people may not have grown up in a world where physical money is dominant, they have taken a liking to dealing with cash and peer-to-peer payments in general.
Despite a large number of various payment options at their disposal, cash remains the most preferred way to spend or receive money among millennials. That news may come as a surprise to many people – including Fintech companies and entrepreneurs – but there is a growing focus on digital payments as well by millennials.
Particularly where peer-to-peer payments are concerned, there seems to be an increasing demand for mobile solutions in this demographic. Transferring money is mostly done through digital means, which is an area waiting to be tackled by the Fintech sector. Moreover, one could say millennials are far more likely to experiment with new payment technologies over time, whereas traditional consumers will stick to the tools they know.
It is quite an exciting time in the financial industry, though, as there has never been a larger selection of widely available payment options than right now. This allows millennials to carefully weigh their decisions on which solution they prefer to use for sending and receiving payments.
At the same time, it does not look like cash payments will be replaced anytime soon, especially not if the millennials have a say in the matter. Roughly 58% of millennials participating in the Google Consumer Survey conducted by GOBankingRates indicated they prefer cash above anything else. Surprisingly enough, even check payments are still quite popular, as the numbers are on par with electronic bank transfers.
On the topic of current peer-to-peer payments, PayPal seems to be the clear leader, although Venmo, Google Wallet, and Square Cash are slowly catching up. It is important to keep in mind Venmo is a subsidiary of PayPal, although both companies are taking a slightly different approach to making payments.
Source: GOBankingRates
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