According to recent Vantiv/Mercator research, more than three-quarters of consumers 18-34 now have a smartphone, and more than one-third have a tablet. They are weaving these devices into many aspects of daily life, including shopping and banking. And their interest in mobile payments is 10% to 20% higher than that of older age groups, depending on the method in question. (Source: Vantiv Insights 2013 Research)
As young consumers embrace mobile technology, they are using these channels in addition to existing channels. In that sense, they represent an emerging “omniconsumer” who operates comfortably across all channels—a group that companies will need to better understand in coming years.
Crossing and Combining Channels
Consumers are beginning to use mobile technology in conjunction with other channels. That is especially true of younger consumers, who are more likely than average to use showrooming techniques—finding a product in a store, looking online using their mobile phones to find the cheapest price, and then buying it either online or in another store (30% vs. 20% average). At the same time, young consumers are still making use of traditional channels. For example, they are more likely to embrace mobile banking, but are also heavy users of ATMs, call centers, and bank branches. In a very real sense, they are setting the pace in the multichannel world.
These young omniconsumers will be the mainstream consumers of tomorrow, and the Vantiv/Mercator research sheds light on what they will expect in several key areas:
Incentives. More than 55% of young consumers would switch payment types to get rewards or discounts, versus 40% of consumers in general. Almost half would be more willing to use mobile payments if they were offered rewards like those attached to today’s credit cards.
Online privacy. Younger consumers are less worried about a company having too much information about them (64% vs. 72% average) or too many companies sharing their personal information (66% vs. 74% average).
Security. Younger consumers are more likely than their older counterparts to worry about mobile security but are less likely to act on that concern.
Mobile wallets. Young consumers are twice as interested as older consumers in using a mobile wallet instead of a credit card—and 6 out of 10 would look to their financial institution to get one.
Mobile payments. Two-thirds of consumers think mobile payments will be common within five years. But more than three-quarters of younger consumers think so, and 41% expect that to be the case in just two years.
The research suggests that companies should take advantage of opportunities to deliver omnichannel experiences that engage omniconsumers across the full shopping lifecycle. It also underscores the importance of getting involved with mobile interactions today to stay in step with young consumers’ interest in mobile payments, shopping, and banking.
Above all, companies will need to offer omniconsumers a seamless, consistent experience that extends across all channels. For consumers in general, that kind of experience is important. For young omniconsumers, it has become absolutely critical—and if one company cannot deliver it, they are likely to find another one that can.
For more information, download Vantiv’s white paper, Mobile Payments and the Omniconsumer of the Future.
Lorena Harris is vice president of corporate marketing at Vantiv, where she leads the Vantiv Insights Research program. For more insights, visit vantiv.com/research.
Vantiv is a leading integrated provider of payment processing strategies and advanced technology solutions for businesses and financial institutions. For 40 years, our team of committed professionals has made us one of the most trusted and respected organizations in the payment processing industry. We’ve driven many of the changes that prompted the shift from cash to electronic payments, and that innovative spirit continues to be our strength. We’re innovators, thought leaders, boundary pushers. Vantiv is changing the face of payments.
