Millennials prefer plastic and mobile payments
August 02, 2013

Younger consumers continue to look for innovative ways to purchase products and interact with their favorite retailers digitally. Many millennials, those ages 18 to 34 and commonly referred to as members of Generation Y, are turning to small and medium-sized businesses that not only accept credit card payments, but process mobile transactions as well. However, in addition to driving mobile payments, millennials also fuel online commerce, according to PYMNTS. It therefore remains crucial for SMBs to invest in electronic payment systems that can accept digital purchases as well as smartphone- and tablet-attachable credit card readers. With millennials spending nearly $1.3 trillion a year, PYMNTS suggested SMBs ensure they are ready to accept multiple forms of payment.

Gen Y prefers payment options
According to PYMNTS, millennials are one of the most influential consumer groups in the retail market. SMBs need to understand the specific features that millennials look for at the point of sale to ensure their business has invested in the types of transaction options younger consumers prefer. Digital payments, such as those processed via online commerce from a computer or portable device, are rising in popularity among millennials as they begin to own multiple types of technology. Many members of Gen Y are attracted to new retail experiences, including mobile payments.

Being able to purchase products using a card reader attached to a smartphone or tablet is valuable to millennials who shy away from carrying cash in favor of credit and debit cards. With members of Gen Y understanding the financial security that comes with plastic, providing millennials with more than one plastic payment option is crucial. PYMNTS reported millennials, especially those still in college, continue to be strapped for cash, but value paying for products or services with their mobile device. The site suggested Gen Y sees mobile payments as a natural step forward in payment innovations. 

In fact, PYMNTS suggested more millennials are using prepaid debit cards and mobile wallets to better control their finances. SMBs that have invested in a portable card reader or in plastic processing solutions are already set to accept multiple forms of payment and will see sales increase from doing so.

Millennials continue to be influential for SMBs because they generate a significant amount of revenue for smaller retailers. Providing millennials with multiple transaction options can not only be a smart move for SMBs, but may be vital in the future. 

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