“Millennials are banking differently than any preceding generation, embracing mobile banking and alternative digital payment options.”
According to some research reports, there are around 4.2 million millennials, otherwise known as Gen Y, in Australia —that’s the generation born between 1980 and 1994—and they comprise around 20 per cent of our population.
There have been countless media stories in recent times describing how different Gen Y are to Gen X and the Baby Boomers. But perhaps one of the most significant differences for businesses to be aware of is Gen Y’s take-up of digital technology and their willingness and desire to use it to pay for products and services.
“Research around payment methods in the Asia Pacific has revealed the Gen Y consumers, aged 25 – 34 years old, are driving demand for newer payment methods with mobile platforms, such as smart wallets and online payment tools.” — Enterprise Innovation
In days gone by, people may have saved up for things by parking cash in different envelopes…or perhaps they used sub bank accounts or Layby. These days, we have a generation of young people who’ve grown up with an ‘access now’ and ‘pay-as-you-go’ mindset. Subscription payment systems have allowed them to have a service or product while paying for it over time, month-by-month—whether it’s their mobile phone, their Netflix subscription, Spotify for music, their gym membership or their education fees.
To keep pace with expectations and demands from this significant segment of consumers, businesses must have the technology in place that they seek.
And the application is broader than services—think about professional membership organisations for example. When you have a generation of younger people at the beginning of their careers, who are keen to network, access professional development and get ahead, associations have the opportunity to bring them into the membership fold early. However, younger people have often not reached their earning peak and large up-front membership fees can be prohibitive. Providing a direct debit billing or subscription option can make it more feasible for an association to sign on younger members and to build a loyal and ongoing relationship with them.
Whether we like it or not, we need to move with the times and provide the technology and services that our customers demand.
If you’re interested in finding out more about how easy it is to get a direct debit billing service up and running for your business or association, contact your local PaySmart Business Development Manager to arrange a meeting today, or check out the information on the PaySmart website.