The Changing Landscapes of Payment
June 19, 2023
As the digital revolution continues to shape the financial landscape, the younger generation is embracing new payment methods at a rapid pace. Peer-to-peer (P2P) payment platforms like Venmo and PayPal have become the go-to choices for millennials and Gen Z, overtaking traditional banks and credit cards.
According to a study conducted by Lendedu, an online marketplace for financial products, nearly 79% of millennials have used a P2P payment platform, with Venmo leading the pack. Venmo has emerged as a social payments platform, enabling users to effortlessly split bills, pay friends, and engage with others through comments and emojis.
A report by the Federal Reserve indicates a decline in traditional banking among younger individuals. Only 36% of people aged 18 to 29 consider banks as their primary financial institution. This shift can be attributed to the simplicity and accessibility of P2P platforms, where transactions can be initiated and completed in a matter of seconds via mobile apps.
According to a survey by CreditCards.com, nearly 46% of millennials are hesitant to use credit cards. High-interest rates, debt concerns, and a desire for financial responsibility are among the reasons for this aversion. Instead, they opt for P2P platforms like PayPal, which allows them to make online purchases without incurring credit card debt. By adding SensePass to your brick and mortar stores, you add a variety of new types of P2P payments such as PayPal and venmo, which can help increase your sales and your demographic of customers.
The younger generation has grown up with smartphones as an integral part of their lives. A study by Deloitte revealed that 94% of millennials own a smartphone, and they spend an average of 3.2 hours per day on their mobile devices. P2P platforms like Venmo and PayPal have capitalized on this mobile-first mentality by providing user-friendly and intuitive mobile apps, enhancing convenience and driving their popularity.
The statistics and sources presented here clearly demonstrate the growing preference of the younger generation for P2P payment platforms like Venmo and PayPal over traditional banking and credit cards. The convenience, social aspect, and simplicity offered by these platforms align with their mobile-centric lifestyles. Adding SensePass to your store’s payment method can help increase sales and allow your customers to have the easiest, most convenient and personalized payment experience.