Why Millennials Prefer Online Payments Over Cash

 

According to Google, Millennials are digitally native and the most connected generation yet. They’re also the most affluent in history, willing to pay for premium experiences and services wherever possible. These things have created a perfect storm for emerging digital payments platforms like PayPal, Apple Pay and Android Pay which now account for more than half of all mobile payments worldwide.

Millennials spend a large chunk of their disposable income on digital goods and services; they’re also more likely to keep their money in digital bank accounts instead of physical ones. As such, it’s no surprise why this generation is gravitating towards online banking as opposed to traditional methods. Here, Canadian entrepreneur and Fintech professional Ferhan Patel, shares an overview of why Millennials prefer online banking over cash payment methods:

 

Online banking is hassle-free and secure

Online banking can be accessed from almost any device, allowing you to do your banking at any time of day. Be it from your smartphone or laptop, you can access your account at any time of the day. Online banking is not just convenient, but also secure. With strong security protocols, you can rest assured that your online banking data is safe. You can also set up online banking to receive notifications as per your preferences to ensure that you don’t miss any transaction. Moreover, online banking allows you to track your finances and stay in the know of your finances at all times. Online banking also provides you the convenience of transferring funds across accounts and make payments. Moreover, you can use online banking to set up budgeting and bill payment schedules. This benefits the busy millennial who is always on the go.

 

It’s accessible at all times

As someone who is always on the go, online banking makes sense for Millennials. You can access your account from almost any device, keeping you in the know of your finances. Furthermore, you can set up password and PIN protection for your account. This ensures that only you can log in to your account and make transactions. You can also set up alerts for transactions and receive notifications whenever a payment is initiated. This makes it easy for you to stay on top of your finances and make timely payments. Online banking also allows you to set up automatic payments for investments, bills and recurring expenses, ads digital marketing expert Ferhan Patel.

 

Millennials are tech savvy and understand online banking

Millennials are tech savvy, particularly those who were born between 1980 and 1994. In fact, 81% of Millennials are using smartphones and only 18% are using feature phones, as per Google. Compared to older demographics, Millennials are more familiar with online banking options. This, coupled with the fact that they make up the majority of online banking users, makes Millennials an ideal target demographic for online banking platforms. With strong brand recognition, online banking platforms can easily attract Millennials with effective marketing campaigns. Millennials also understand the importance of financial security. This is likely due to the fact that the majority of Millennials are financially responsible and well aware of the importance of savings. Online banking platforms can provide a high level of security, making it an attractive option for Millennials.

 

It offers flexible security options

Online banking allows you to set up different security options for your account. This includes enabling two-step verification for added security. Furthermore, you can also set up alerts for unusual account activity and receive immediate notifications when a transaction is initiated. This ensures that you’re always on top of your finances. Furthermore, Ferhan Patel ads, you can use online banking to track your investments, set up budgeting and track your spending. Online banking also allows you to make transfers between accounts, making it useful for cross-border transactions.

 

Millennials value their money more than ever

Millennials are more likely to say that they value their money more than any previous generation. Despite the fact that Millennials are more likely to keep their money in digital accounts, they’re also more likely to save $50 or more in their savings account every week. This is likely due to the fact that Millennials have more disposable income than any generation before them.

 

Cash Payment Is Outdated and Merely Reliable For Now

The final reason why Millennials prefer online banking over cash payment methods is that cash is simply outdated. Aside from the fact that it’s more difficult to spend cash in public places, cash is simply unreliable. In 2018, there’s a greater chance that you might be charged a $5 fee for sending $20 or less in cash. This is simply not reliable, and it’s unlikely that it will ever change because of the fact that cash remains the most trusted payment method.