By 2025, Millennials are expected to represent 75% of the workforce and 46% of total U.S. income1, and they’re expected to be the customer segment with the greatest personal income—growing to an aggregate $8.3 trillion by 2025.1
Millennials enter the payments-products world mostly through prepaid and debit cards. By the time they reach their mid-20s, they transition to credit, and more than half of older Millennials use mobile P2P payments. Here are some strategies to keep in mind when considering your offerings for this typically cash-free segment:
- Offering a range of payment products, targeted by life stage and age, will help you develop relationships with them early on.
- Millennials tend to choose new credit cards based on fees, rates, introductory offers and rewards programs, so consider expanding your offerings in these areas. Their expectations around how card programs should work are different from what previous generations have expected.
- They're generally concerned with overspending and getting into debt, and are often unsure of how to build credit. Including budgeting tools and offering financial education with your credit program can help them get on track.
- This tech-savvy segment is more likely than other generations to use emerging payment methods. Developing and promoting mobile apps, wallets, IoT devices, contextual platforms, and P2P payments options that are competitive in the marketplace can help expand your existing relationships with them.
Sources:
1 U.S. Census 2011, Consumer Expenditure Survey 2011