Millennials driving use of payment technology

The next generation of influential and savvy shoppers want new ways to pay for goods, are particular about where and how they shop, and display little loyalty to brands, according to new research from Visa.

The Visa New Zealand Millennial Survey – providing fresh insights around technology, payments and retail from people born between 1980 and 2000 – showed 62% of those surveyed say they would like to use a fingerprint or retina scan, known as biometrics, to pay for things, as they see it as being secure and convenient and having the “cool factor”.

Marty Kerr, Visa Country Manager, New Zealand and South Pacific, says millennial consumers are looking to payment technologies to make their lives easier and retailers need to meet their needs.
“Emerging payment technology like biometrics remove potential pain points for customers. They don’t have to worry about forgetting or losing their cards or wallets, and just need to spend a brief time at the till without having to insert cards or remember a PIN,” he says.

More than three quarters (78%) say their smartphone is their favourite piece of technology that makes their life easier, with 83% of females finding favour with smartphones more than males on 73%. Smartphones blitzed other forms of tech, with laptops (10%), tablets (three percent) and smartwatches (2%) falling well short in the eyes of millennials.

Visa’s research also revealed the following findings:
•    79% of those surveyed wouldn’t leave home without their phone and 61 percent say they already use their smartphone to pay for everyday items.
•    Half (51%) of those surveyed feel their life will change significantly in the next five-10 years through technology. That’s even higher (60%) among 18-24 year olds.
•    However, they would love their technology to do even more than it currently does, with extended battery life the biggest wish (10%) along with suggestions such as “read my mind”, “Artificial Intelligence”, “cook meals”, “3D display like Star Wars”, “make me money” and “fix the planet”.
•    One in five have no brand affiliations – 20% said they are not loyal to any brand. 
•    The top things that will see millennials lose ‘love’ for a brand are failure of the product or service (68%), rising prices and poor customer service (63% respectively).
•    Items they like to spend their money on the most is food (63%), entertainment and going out (47%), travel (44%), clothes (38%) and technology and gadgets (34%).

Visa is working to drive the use of payments technologies that meet the needs of these ‘new generation’ consumers, empowering them to make secure payments with whatever device or payment application they choose.
The launch in the past year of several mobile wallets using contactless technology, including innovations from New Zealand banks, is contributing to the growth in Visa payWave transactions. In December 2016, 19.1 million Visa payWave transactions were made (up on 16 million in October 2016). 

As evidenced in Visa’s current marketing campaign, the research also shows millennials shouldn’t be underestimated: they have ambitious career goals and are instrumental to driving the shift to digital engagement including payments. Two thirds (65%) want to own their own business, have a challenging career or become a CEO, MD or senior manager.

“We can see that this industrious, forward-thinking mindset certainly rings true with two outstanding Kiwi businesses run by entrepreneurial millennials, who we’ve been working with in a recent Visa campaign. Moustache Milk & Cookie Bar and Tiger Burger in Auckland are embracing payment technology to improve customer service,” says Kerr.