The number of people using mobile payments is growing. While the Millennial generation leads the way, Baby boomers and Generation X also use this technology. Apple Pay is the most popular mobile payment app, with a projected 14.4 million users by 2025. Its closest competitor is the Starbucks app, which works only at Starbucks locations. Other popular mobile payment apps include Google Pay and Samsung Pay, which each have more than 16 million users.
Millennials
Millennials, a generation with a large disposable income, are increasingly adopting mobile payments to make their purchases. These mobile payment solutions connect with customers’ digital wallets, making it easy for them to manage their spending. Additionally, consumers can access their payment history on the go. They can save receipts and other records in a digital format, reducing paper waste.
Currently, more than 50% of millennials are using mobile payments. However, nearly half of them have experienced problems while using contactless mobile payments. These issues are largely due to network and technical issues. In fact, 47% of millennials who have tried mobile payments have discontinued using them due to security concerns and network security.
Generation X
Mobile payments have become popular among Generation Xers, the second largest demographic group in the US after the Baby Boomers. These individuals are largely Internet users and heavily use mobile internet connections. In fact, their global mobile internet usage rate is second only to the Millennials. In fact, in a recent study, those aged 35 to 44 reported using mobile apps via smartphones or tablets for an average of eighty hours a month.
While many studies suggest that millennials are more likely to use mobile payment than Generation X, research indicates that they are not using it as often. While most millennials have never used a mobile wallet, 34% of Gen X and baby boomers report using it within the past year.
Gen Z
As the youngest generation of consumers, Gen Z is becoming increasingly comfortable using mobile payments for everyday transactions. They spend more money at stores that have options for flexible payment methods. Moreover, they want to participate and interact with brands when making a purchase. This is why organizations should prioritize personalized interactive shopping experiences and implement payment solutions.
According to research, nearly 75% of Gen Z consumers are willing to make mobile payments if given the opportunity. This generation spends an average of 23 hours per week on video content and is eager to learn about their money. Many Gen Z teens say that YouTube has given them more financial knowledge.
Baby boomers
Boomers are becoming increasingly comfortable using mobile payments to pay for their products and services. They have a high level of spending power and are often the head of household. As such, merchants should cater to their preferences while offering the option of traditional payment methods, such as cash and cheque. The majority of boomers still prefer traditional forms of payment.
Millennials lead the way when it comes to using mobile payments, but baby boomers aren’t far behind. More than half of baby boomers are using their smartphones to make payments.
Older generations
Consumers in the older generations are more likely to use mobile payments than younger generations. These consumers grew up in a world of plastic and checks, but have become accustomed to the new technology. They are more likely to use debit or credit cards for online purchases and have become familiar with P2P and mobile payment apps. And while many older consumers are skeptical about the benefits of P2P, it’s important to note that 87% of this group owns a smartphone. And a third of that generation has used a mobile payment app or a universal payment service in the past 12 months.
According to a recent survey, nearly 50 percent of older consumers plan to use mobile payments in the near future. And, nearly half of them plan to connect their mobile payment information with a wearable device, such as a smart watch.