How Millennials are revolutionizing the Digital Banking & Payments Scenario
According to a recent study, 86 percent of the millennials aged 18-34 years say that they are “Mobile Money Users”, meaning they use digital banking and payments solutions on their smartphones. The millennials were the first to get introduced to gadgets and electronic products. And this is one of the reasons why they are more comfortable using digital payment solutions on their gadgets.
Let us discover the aspects that drive millennials to use digital banking and payment solutions. We will also look at the ways they are using these payment solutions in their daily life.
Millennials are Exploring New Options
Digital banking service providers are promoting cashless transactions in order to save recurring expenses and to grow their customer base. The millennials seem to be most interested in the options offered by payment solution providers. The use of hard cash is diminishing day by day and digital banking & payments are on a consistent rise.
Credit card, debit card, and net banking payment solutions are widely accepted around the world. Not only millennials but other generations are equally proficient in using these payment modes. But when it comes to evolving online payment platforms, millennials are the first one to register their presence.
Let’s take a look at the peer-to-peer lending services. Whether you are booking tickets for a concert or dining out at a vegan café; you can use the peer-to-peer lending app to split the bill. This is an excellent choice for all those who go out in groups. Nobody shares the burden of paying bills as everyone can contribute their share. And as millennials tend to go out in groups frequently, they are the ones who are enthusiastically using and promoting these payment sharing services.
Microfinance companies have initiated collateral-free loans. Yet again, millennials are at the forefront to avail these services. The complete process takes place online, from submitting documents to verification to setting up automatic EMIs.
Besides these, unified payment interface (UPI) facility links your mobile number with your bank account, allowing for hassle-free payments without entering user credentials. Similarly, contactless cards working on the principle of near-field communication (NFC) are a rage these days. And undoubtedly, millennials are the ones who are vigorously adopting these digital payment solutions.
Digital Solutions Because…
There are various reasons to opt for digital banking and payment solutions. For millennials, the following factors prompt them to opt for digital solutions:
- Real-time – You don’t need to wait for hours, or even minutes, to complete a digital transaction. Everything happens in real time, whether it’s splitting money amongst friends or subscribing to a recurring OTT subscription.
- Secure – Financial transactions must happen over secure online payment systems because financial fraud is a common phenomenon. And millennials, like everyone else, opt for digital banking solutions that integrate robust security measures such as PCI-DSS compliance, 2FA, 256-bit AES encryption, and so on.
- Convenience – You don’t need to step into the bank premise, sign up checks, count the cash, etc; there are countless ways of conveniently transacting with digital banking solutions. And as time is the most important asset for everyone, including millennials, you can save a lot of it by using digital payment solutions.
- Personalization – As millennials are tech savvy, they are more inclined towards personalizing preferences on digital banking apps and systems. So whether it’s opting for subscriptions, managing contact list, or browsing offers; these apps have features that millennials simply love.
- Environment-friendly – Digital banking solutions eliminate the need to use paper and don’t require you to commute to and fro. These are progressive steps that aim at reducing carbon footprint. The millennials are quite conscious about the need to keep the environment clean and prefer eco-friendly solutions.
Millennials are surely harbingers of change in the digital banking and payments landscape. While the previous generation is learning from millennials to adapt to digital solutions, the future generations will surely take these to the next level.