Report: Millennials are risk-averse regarding mobile payments
There is an “unexpected” level of risk aversion among millennials when it comes to mobile pay, with one in four having ceased making mobile payments due to security concerns, according to the “The Millennial Influence,” a report examining the payments behavior of millennials in the U.S., from VocaLink, the ATM network provider for the U.K.-based Link scheme.
Additional findings from the report:
- 70 percent of respondents would be more likely to use a new mobile payment service if it were provided by their own bank, which they viewed as the most secure option;
- two-thirds were more open to fingerprint biometrics than chip and pin, due to the increased security; and
- nearly three-quarters would like to be able to make instant mobile payments to both businesses and individuals regardless of their banking provider.
“Surprisingly, the element of ‘trust’ and ‘security’ was a priority for many of the millennials we spoke to, and as a result felt strongly that their bank was the preferred provider of payments technology,” said Cara O’Nions, director of marketing and customer insights at VocaLink. “However, it is clear they still want to see further innovation from all payment providers to respond to their need for ubiquitous and reliable instant mobile payments. At this stage, while a number of fintechs are still in the process of developing and fine-tuning their products and services, the banks have a substantial head start to provide or support a superb customer experience.”
The report also explores the existing footprint of mobile payments technology in the U.S., with findings that:
- 52 percent of millennials use mobile payments;
- 86 percent of millennials using contactless mobile payments have encountered problems when attempting to pay for something; and
- 80 percent want their bank to guarantee the security of their phone, in terms of both transactional security and the physical security of the device.
For the survey, VocaLink polled more than 5,000 millennials across the U.S. about their banking behavior, use of payments technology and desired services from payments providers.