Believe it or not, millennials do pay their bills, if not a little differently. Millennials are the largest U.S. age group, which means they are worth adjusting for. But did you know more than 20 percent of millennials have never written a check? This is according to a recent study of the financial habits of millennials, also known as Generation Y, entitled Bill Payments Money Mindset Index .
This study was performed by Javelin Strategy & Research and should provide focus to the growing necessity of having integrated mobile banking and online bill payment options. Why? For starters because Gartner has estimated that the mobile payments market is expected to have a transaction value of more than $721 billion by 2017. Add to this the peculiar payment habits of millennials and you will begin to understand the need for integrated payment options. Here are a few of the findings that put millennials into a category of their own:
- 21% of millennials have never written a physical check to pay a bill.
- 39% use three or more methods (PC, mobile, snail mail) to pay their bills.
- 41% pay their bill using their debit card.
- 38% use apps and mobile tools to make bill payments and view statements.
- 43% use apps and mobile tools to view bills and transaction histories.
- 24% use apps and mobile tools to set up automated recurring payments.
In each of the categories listed above, millennials beat all other age groups by a wide margin. So how do you cater to millennials? CONVENIENCE.
Millennial habits show they place a premium on channels that include bill payment options integrated into mobile apps and internet banking. Additionally, offering features like email reminders and text alerts will ensure payments are made on time and are easy on the environment (another millennial priority). If you plan to position your credit union to capture a piece of the $712 billion mobile payments pie, choose technology providers that offer integrated bill payment options that can be accessed from within your internet banking platform and mobile app.