Young People Prefer Mobile Payment Apps Over Traditional Banking Methods, Confirms New Study

A new study by card management platform Marqeta is highlighting the preferences of the younger generation and how they opt for convenience over everything, including payments.

The research delineated how younger people are more likely to ditch cash and opt for more advanced modes of payment like mobile apps.

On average, 4000 users were surveyed for the study over three different continents and this also entailed 1000 people from the United Kingdom alone.

Interestingly, the majority of people who responded said they feel so much more comfortable and confident when dealing with payments that come under the category of being contactless. Moreover, they even spoke highly about how wonderful that feeling is related to leaving your wallet at home, and instead, relying on your phone for payments.

In the last year, the study shed light on how the majority of UK residents went contactless for payments last year and this year seemed to be following that tradition as well.

Some people in the recent study mentioned how they no longer remember when was the last time they relied on their wallets for payments. And that just goes to show how e-payments have been trending for a while now. Another interesting finding from the study was when respondents said they no longer remember any pins or passwords related to bank details. And the figure has gone up to 54% in those below the age of 24 years.

Similarly, we saw the new study by Marqeta go in-depth about the decline of in-person banking strategies. On average, people couldn’t even count on their hands how many times they last visited their nearest bank’s branch as it wouldn’t be wrong to deem the thought as being unknown to them.

“To be honest, going to the bank is embarrassing and a backward idea for many of us. Why not avail convenience”- mentioned one respondent who as you can tell is very fond of digital banking.

About 63% of those surveyed strongly feel that it wouldn’t be too long before we see cash disappear altogether from banks. Meanwhile, others displayed great confidence with contactless banking, adding how it would make no difference to them if their bank’s branch shut down tomorrow.

But despite these alarming findings, there are still quite a few people who rely greatly on their bank branches, claiming it’s a relationship that they’ve been holding for quite some time now. Citing loyalty as a major factor too, such people were also quite keen on mentioning how they’re not willing to give up that personal relationship, while others confirmed how they’ve been with their bank for the past 6 years as others spoke about ten years.

Other than that, the new study noted how open-minded people were in regards to the different modes of payment available in the market today. And that includes accepting cryptocurrency as a leading gateway to revolutionizing payment methods worldwide.

At the moment, at least 26% of respondents already own cryptocurrency while a staggering 82% are keen on getting their hands on it and using it while making purchases, similar to the working of debit cards.

Marqeta’s strategy director has mentioned in detail how people are ready to leave their bulky wallets at home and instead, adopt newer strategies like mobile wallets. She also insisted on how confident people are in their mobile phones handling all of their payments, marking a revolutionary step away from classic banking practices.

But it’s not hard to see why. You’re saving time, energy, and effort of standing in long queues, not to mention steering far away from close contact as well. And with more and more bank branches shutting at an unpredictable rate, it’s best advised that banks jump on board with online banking for their own benefit, let alone customers.

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