Changing Consumer Credit Behavior Benefits Mobile Payments
Younger shoppers between the ages of 18 to 35 are less enthusiastic about credit cards compared with their older counterparts, according to a Mercator Advisory Group report on consumer behaviors regarding credit cards. Just 59 percent of people between the ages of 18 to 35 have credit cards, compared with 70 percent of seniors. Debit is surpassing credit among younger shoppers, with 36 percent of young adults using debit cards as opposed to 12 percent of seniors. “The anti-credit card sentiment appears to be waning,” says Mercator’s Karen Augustine. “But issuers need to address the needs of the young adults in order to stimulate greater credit card volume.” Analyst Sinclair Briar observes that today’s young shoppers will increasingly drive mobile payment and NFC adoption in coming years. “Make no mistake about it, today’s consumers do not have an aversion to spending,” he says. “It’s just their payment preferences which are shifting.” Briar notes that NFC has successfully been tested with a focus group of shoppers under the age of 40. “Mobile payment options are resonating with this group solidly,” he reports. “Diminishing credit card access is only going to benefit mobile momentum in the long run.”
From “Changing Consumer Credit Behavior Benefits Mobile Payments”
Mobile Marketing Watch (02/18/13) Essany, Michael