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FinanceMillennials are waiting for the payment industry's "Uber moment"

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Brian Bourne
Posted byBrian Bourne

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Payment systems company VocaLink have found that despite features like Apply Pay, European millennials are still waiting for the mobile industry to have its own “Uber” moment.

Unveiling comprehensive research, which included over 4,000 respondents aged between 18-35 in the UK, Germany, Italy and the Netherlands showed that while this age group used their mobile phones extensively throughout the day, very few were embracing mobile payment.

The report claims that 1 in 5 millennials who tried to use mobile payment, ended up abandoning it. This statistic led to the discussion to find out how the largest generation since the baby boomers were paying for good and services.

A lack of interest in mobile payment is seen in Germany where 55% of millennial respondents said that they have never used mobile payment technology before. Germany is still very reliant on cash throughout their society unlike European counterparts Sweden.

The research also shows that only a quarter of the respondents in the UK used any form of mobile payment technology. Within that quarter, services created by a banks are the most popular, while Paypal is the second most popular.

The rest of the results throughout Europe show similar results in payment preference. Millennials in Italy still opting towards more classic forms of payment with 28% of respondents depositing cheques regularly.

The research released by VocaLink suggests that millennials are looking for substance over style. They’re willing to wait for a technology that’s seamless, secure and instant, when it comes to their finances they’re reluctant to try something new unless they know they’re safe.

Cara O’nions, Director of Marketing and Customer Insights commented on the studies finding saying:

“At this moment in time, it would seem millennials are still following their parents’ lead when it comes to making payments, using methods that they know and trust. So while attitudinally millennials may be game-changers, the research shows that more conservative behaviours are evident when it comes to making payments.”

This observation is supported by the survey’s findings which showed that while the knowledge of Apply Pay only 2% of UK millennials said they had used it. For now however, it appears that millennials are willing to stick with traditional payment methods until there is a major advancement in the mobile technology industry.

The digital world is tracking the attitudes of millennials closely as technology companies look for signs and trends that will help reveal what the next big innovation will be throughout mobile payments.

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