A recent survey commissioned by VocaLink found that more than a third of Dutch millennials (36%) and a quarter of UK millennials (25%) are now making mobile payments in-store, online and in-app.
As Rian Boden of NFC World reports, the survey also found that 58% of UK respondents would prefer to use a mobile payment service provided by their bank.
Moreover, one in 11 UK millennials are already paying for car parking using mobile payments. In addition, VocaLink confirmed that 70% of U.S. millennials are more likely to use a new mobile payment service if it was provided by their own bank, while 67% of US respondents said they would use fingerprint recognition to make a payment in the future.
“The millennial generation is quite rightly pushing the payments industry to drive high quality innovation, currently dissatisfied with what is available today,” stated Cara O’Nions, director of marketing and customer insights at VocaLink. “While payment preferences differ across the world, our research shows that in nearly all cases, millennials are consistently looking for substance over style — technology that is seamless and secure and allows them to make payments instantly.”
In related news, Starbucks COO Kevin Johnson told investors earlier this week that mobile payments now account for a quarter (25%) of all transactions processed in Starbucks stores across the U.S., with Mobile Order and Pay transactions representing 6% of the total, reaching 7% in September 2016.
“Approximately 3,300 of our stores are handling 10% of their orders at peak through Mobile Order and Pay,” Johnson stated. “In 600 stores, Mobile Order and Pay represents over 20% of orders at peak, triple the number from last year.”
As we’ve previously discussed on Rambus Press, mobile wallets offer consumers a convenient, “tap and go” frictionless commerce experience that seamlessly integrates loyalty cards, boarding passes, ID cards, coupons, event tickets, alerts and notifications. For retailers, mobile wallets can enable businesses to engage users with an immersive, in-app experience that starts at the beginning of a retail journey and continues beyond with notifications, reminders of upcoming expiration dates, archived digital receipts and a real- time tally of current loyalty bonus points. For banks, digital wallets, which are far more secure than credit or debit cards, have fast become a strategic focus as consumer interest ramps up.
Indeed, according to Forrester Research, U.S. mobile payments accounted for an estimated $67 billion in 2015 and are projected to increase to $83 billion in 2016, or 24% of all purchases made via smartphones.
Interested in learning more? You can check out our mobile payments product page here and our recent ebook on the subject here.