Millennials Use Instant Payment Apps as New Standard
Instant payment apps are now part of a Millennials' daily lifestyle and no longer just for the rare re-payment to a friend for drinks or a meal. Today, Millennials are using instant payment apps to pay for all sorts of things, ranging from recurring bills such as rent and utilities, to a one-time, low-priced purchase such as a cup of coffee.
Use of payment apps has evolved and is no longer just a “Millennial thing”, with an increase in usage among Gen X and Baby Boomer generations, as instant payment becomes a bigger part of normal daily life. A key difference in instant payment usage from one generation to another is the size of the payments. Older generations tend to utilize payment apps for larger amounts and on a less frequent basis than Millennials, who use them frequently for both small and large amounts.
Usage of the P2P (Peer-to-Peer) payment app Venmo became a new verb once Millennials started “Venmo-ing” each other to pay for their bar expenses. Several P2P payment competitor apps have since entered the scene, including Square, Apple Pay, and the newest, Zelle.
Zelle is finding huge success as a stand-alone app for P2P payment transfers, but its ability to sync with a user’s bank is an added bonus which makes it easy and convenient to use for all types of bill payment. One reason Zelle and other similar apps that link to a user’s bank are becoming so popular is the level of security they provide. People trust their banks, and that trust carries over to apps that connect securely to their banks. This sense of safety enables P2P payment apps to be incorporated into everyday life.
Millennials Find Payment Apps a Wise Way to Manage Money
Millennials are now using P2P payment apps such as Venmo and Zelle for all areas of their life. What has been primarily used as a way to settle the bar tab among friends, is quickly transforming. Millennials are using P2P payment apps as a convenient and smart way to manage their money when paying all of their bills.
Millennials are loving the ease of use when splitting rent, utilities, food, and hotel rooms while on vacation. Instant reimbursement eliminates the delay in repaying friends and family. It also removes the anxiety of hearing from friends, “I’ll pay you back later”, which is a complete buzz kill when out to dinner or on a trip.
Instant payment apps such as Zelle take away the stress of waiting for a check to clear and knowing exactly what funds are available in one’s bank account. This allows for better tracking of finances and removes the pain points with payment methods that can hold up the transfer of funds for days.
Millennials Love Using P2P Payment Apps
All generations share one commonality when dealing with payments: they all like to be paid back quickly after dishing out cash in advance for a concert or hotel room, for example. When surveyed, Millennials said that they want payment back ASAP, whereas other generations don’t mind waiting a little longer. Forty percent of Baby Boomers said that they don’t ask for payment owed but rather choose to wait for repayment to appear.
The ability of payment apps such as Zelle to securely connect with a user's bank has eliminated the need to use one’s banking login credentials, which is a big plus among Millennials. Millennials can now transfer money from bank to bank with ease as more and more banks become part of the Zelle network. Not only does it reduce time and risk when paying back a friend, but it also eliminates the need to find an ATM and suffer the penalty of those dreaded ATM fees.
Ease of gift giving is another benefit of using P2P payment apps. Gift givers are now able to send a monetary gift without delay. So instead of waiting for cash or a check in the mail on a special occasion such as a wedding or birthday, the gift receiver can now enjoy that monetary gift immediately. Friends and family members are also taking advantage of instant payment apps to surprise or pamper their loved ones with small monetary gifts for experiences to brighten their day, such as with a pedicure or nice meal.
No matter the occasion or the size of the payment, Millennials have embraced instant payment apps and have proven the new technology to be reliable, quick, secure and easy to use.
Source: CNBC.com
