Young people increasingly prefer mobile payment apps to traditional payment methods, according to a study by the card issuing platform Marketa.
The company surveyed 4000 consumers across three continents, including 1000 respondents in the UK, and found that the majority (61%) felt safe enough with contactless payments to leave their wallets at home and simply pick up their phones, a a figure that rises to more than three-quarters for the UK. Generation Z respondents.
According to research from Marqeta, almost all (96%) of UK consumers surveyed have used contactless technology in the last year. Additionally, 42% of UK respondents say it's been so long since they've used anything other than contactless that they can't even remember their PIN, a number that rises to 54% for those under 24.
To change mindsets
Marqeta's research also highlighted the death of in-person banking among younger generations.
Nearly half of UK consumers surveyed said they could count on their hands how often they had used a bank branch in their lifetime, while 50% of 18-24 year olds said the thought of going to a bank is completely retrograde. and alien to them.
Nearly two-thirds (63%) of those surveyed believe cash will eventually disappear entirely, while 59% believe it will happen within the next five to ten years. And a third said it would have no impact on their lives if all physical bank branches closed tomorrow.
Despite the decline in in-person banking experiences, most people have a long-term relationship with their main bank, according to Marqeta. Six out of ten consumers surveyed have been with their bank for more than six years, with 38% staying with their main bank for more than a decade.
Additionally, it appears that UK consumers have some appetite for innovation in terms of payment gateways, with research from Marqeta finding that consumers are open-minded towards cryptocurrencies.
More than a quarter (26%) of UK consumers surveyed now own crypto, and 82% of them want to use it as a debit card at the point of sale.
"The era of the bulky physical wallet may be receding, trust in mobile wallets is growing, and people are increasingly comfortable that their mobile phone can handle their payment needs and not leave them locked up," said Anna Porra, European Strategy. Director at Marqueta. "While the move to digital payments was born out of necessity, many are happy to move away from in-person banking altogether."
"And it's easy to see why: with long lines, inconvenient opening hours and hygiene issues, especially during the pandemic, creating the perfect storm to hijack consumers' appetite for in-person experiences that weren't initially very popular."
It added: "With physical branches closing at unprecedented rates, banks need to ensure they adapt their products and services to operate seamlessly online."