Millennials Moving to Mobile Electronic Payments

August 19, 2014 –  According to a new report, mobile app-based peer-to-peer electronic transactions are replacing cash, checks and credit cards among 20-somethings. Using apps such as Venmo or Fiserv’s Popmoney, consumers can connect with banks and credit cards using only their smart phones to send and receive money from friends with ease.

In some cases, mobile payment users said they were introduced to P-2-P mobile transactions through peers who insisted that they download apps to split restaurant or bar tabs, and that they almost immediately began using the apps on a regular basis due to ease and convenience.

A recent Nielsen Report found that 18-to-34 year olds account for about 55% of those who use mobile payments. Nearly 50% of peer-to-peer payment users use the apps for dining out, with 71% reporting that these types of payment options reduce tension around splitting the bill.

Millennials are a group of consumers to be taken seriously, spending $1.3 trillion annually, according to a January report by Boston Consulting Group.

Peer-to-peer payments made via financial institutions and non-bank providers such as PayPal totaled $74.9 billion in 2013 according to Javelin Strategy & Research. Venmo alone reached $314 million in mobile payments in the first quarter of this year, up 62% from the prior quarter.

Typically, the apps millennials prefer free to download, and have low transaction fees.

About ETA

The Electronic Transactions Association (ETA) is the global trade association representing more than 500 payments and technology companies. ETA members make commerce possible by processing more than $4.5 trillion in purchases in the U.S. and deploying payments innovations to merchants and consumers.