Millennials Are Still a Thing…
With Gen Z making many a headline these days, it’s easy to think that millennials are a fad generation of the past, who have apparently ruined retail and beer sales, along with dozens of other things. Whether you think they’re lazy, entitled, or actually the wave of the future, they’re still the largest living generation and one of the major forces driving mobile transactions, especially around mobile wallets.
According to a recent PwC report, researchers noted that 85 percent of the global population, and 90 percent of the world's under-30 population, live in emerging markets. That means millennials are ripe for leading the charge in adopting new technology and have already helped the move toward mobile wallets.
Online merchants not only need to prepare for mobile wallet payment options but also ensure that the proper security measures are in place to protect and evolve with fraud. As we’ve pointed out before, where money flows, fraud follows. Especially as millennials can be a bit too trusting with their information, merchants need to double down on security. Here are a few millennial traits that we discussed in our most recent Rethink Payments and Fraud webinar, “Millennials, Security and Fraud,” to keep in mind for your mobile payments and fraud prevention strategies.
They Grew Up on Technology and Immediacy: According to a recent study with Braintree and Koski Research, 67 percent of millennials trust companies that are technology-based – two times more than boomers. Which may be why another survey found that 33 percent of “late millennials” and 36 percent of “early millennials” have already used a mobile wallet, compared to only 16 percent of the general population. And given millennials’ and future generations’ comfort with technology, adoption will increase more rapidly over the next couple of years. Millennials have come to expect that all the tools and services they use will improve and become significantly more efficient. This creates the expectation of a seamless experience across the technology they use and immediate results with a few quick swipes. They’ll expect the same of mobile transactions as they become more efficient and merchants expand their mobile app and web offerings.
They Question Payment Security: Witnessing the rise of data breaches, fraud and cybersecurity concerns have been a large part of millennials’ adult lives. This had led them to be a little more cautious with their payment methods: studies have found that millennials are more likely to halt a transaction if there are security concerns or issues with payment methods. They’re more likely to use trusted payment methods or third-party verified payment methods like PayPal, where they’re more likely to get protected.
They Love to Share: Whether it’s ride-sharing or tweeting, millennials love to share, literally and figuratively. This is especially true on social media, where they’re sharing favorite foods or information about where they grew up – they’re leaving a trail of clues for fraudsters to steal their passwords or identities. Their love of sharing, combined with a sense of immediacy, has influenced the way they use technology and the way they’ve experienced fraud. While they may be cautious with their payment information, fraudsters are exploiting their sharing habits. But, this love of sharing can also help merchants – if millennials trust them. Whether they have a bad experience because of an instance of fraud, or enjoy a seamless, safe transaction, they’ll tell all of their friends. That makes it extra important for merchants to maintain a secure transaction environment.
Knowing these millennial habits, merchants must learn to balance how to incorporate the right fraud prevention technology and instill confidence to create return shoppers. Can you identify a mobile device as a fraud strategy? Do you have Geolocation? Can you identify if a customer is using a proxy? The visible repercussions for fraud include lost merchandise, chargebacks, fines, and manual review, not to mention invisible ones such as breach of trust and reputation damage. The push for mobile, especially among millennials, has already taken off – don’t let your fraud prevention strategy fall behind.
To learn more about mobile payments and online fraud, download our "Mobile Payments & Fraud: 2017 Report".