Millennials fuel increasing usage of mobile payment systems

Millennials fuel increasing usage of mobile payment systems
Apple's fiscal Q1 earnings report showed a 500% increase in Apple Pay transactions year-over-year. Since Apple gets a slice of every transaction, this is a big deal financially. Besides Apple Pay, other mobile payment services are seeing a rise in usage. Scott Blum, VP at Total Merchant Services, gives credit to the millennials for this. Making up one quarter of the U.S. population, Blum predicts that this generation will lead the way as credit cards become obsolete, replaced by the mobile wallet.

As typically occurs with new technology, there are those who would prefer to use the old methods. According to the 2016 North American Consumer Digital Payments Survey conducted by Accenture, "…consumers are still relying largely on traditional payments methods despite the availability of reliable digital payments providers." The same report noted that 56% of consumers are aware that they can make payments using their smartphone.

The Accenture survey points out three major trends that are taking shape in the mobile payments industry. One, this form of payment is becoming mainstream. Two, most consumers using digital payments trust their traditional credit card providers when deciding which digital card to use. And third, millennials and mass affluents are the groups that are ahead of the pack in using mobile payment technology. 35% of these two groups use their phone to make payments online, compared to the 23% of other consumers that pay with their handset.


Those who have yet to use a mobile wallet say that plastic credit and debit cards already do the job. Consumers thinking "If it ain't broke, don't fix it," will need a specific reason to use a digital wallet. And figuring out what this reason is will be keeping Apple, Google, Samsung, LG and others hard at work.

source: Accenture via Forbes

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15 Comments

1. trojan_horse

Posts: 5868; Member since: May 06, 2016

Samsung Pay FTW! I use everywhere I go shopping, be it via MST of NFC.

3. chbanks512

Posts: 73; Member since: Mar 07, 2017

Samsung Pay is the biggest reason I won't even consider the Pixel or LG G6. No way I'm giving up Samsung Pay. Galaxy S8 here I come.

5. cncrim

Posts: 1515; Member since: Aug 15, 2011

Samsung Pay and IR blaster is reason i still use my S6 Edge.... not plan to switch anytime soon.

13. Firenze91

Posts: 202; Member since: Nov 19, 2014

I'm with you bro...i just updated mine to 7.0.1...it's amazing, i might just put my iphone back in the drawer

2. trojan_horse

Posts: 5868; Member since: May 06, 2016

Samsung Pay FTW! I use everywhere I go shopping, be it via MST or NFC.

12. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I wouldn't use Samsung pay same reason i don't use Apple Pay. I don't use services that lock me into a certain ecosystem only.

4. Soundjudgment

Posts: 370; Member since: Oct 10, 2016

**Beep!** Card Cannot be read **Beep!** Card Cannot be read *Beep!* Next....

6. cmdacos

Posts: 3651; Member since: Nov 01, 2016

Love my Samsung Pay. The best mobile solution out there by far. Interesting that lg didn't come with rumored MST integration with the G6.

7. Clars123

Posts: 1071; Member since: Mar 16, 2015

there's a regional variant for that...

8. cmdacos

Posts: 3651; Member since: Nov 01, 2016

Really? Where's that? G6 was supposed to have MST for the Korean variant but it never happened.

14. Clars123

Posts: 1071; Member since: Mar 16, 2015

I was being sarcastic

9. therealestmc

Posts: 678; Member since: Jul 23, 2012

Have you used Apple Pay?

10. cmdacos

Posts: 3651; Member since: Nov 01, 2016

Yes of course, why do you ask?

11. xondk

Posts: 1904; Member since: Mar 25, 2014

So..people that have grown up with technical stuff being the normal, are more likely to use technical stuff, like mobile payment? Well.......yeah?

15. tntwit

Posts: 79; Member since: Sep 11, 2012

I'd use it everywhere if I could, but most places don't seem to support mobile payments. It works at Disney, so I used it everywhere there and loved it, but back home, few places seem to support it. Most places don't have the little sign saying whether it works or not and when I do ask I either get "No" or "I don't know" and I'm not experimenting with a line of people behind me. Most places seem to still be struggling to get up to speed with the chipped cards and some of the machines (like our local grocery store) have the slot covered because it isn't yet supported even though the terminal has the hardware. My wife has a Samsung, which theoretically works nearly everywhere, but our bank doesn't support it, so a lot of good that does. I really want to use it more, so I will have to start asking more often, but I think there could be a better effort to clarify who can and cannot accept it without having to look it up online.

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