Mobile Payment App Rules Millennials Over Charge Card Payment Method

By , August 25, 2016 12:53 pm

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Millennials are not credit cards folks, they prefer mobile payments options.

This news shouldn’t surprise us considering how the economy has been over the past 35 years of millennials lives.

Maybe we could learn something from their new knowledge and philosophy on spending,

http://www.vendingmarketwatch.com/news/12245385/data-reveals-millennials-are-avoiding-credit-cards

Data from the Federal Reserve shows that the percentage of U.S. Millennials (people under the age of 35) who own a credit card has fallen to its lowest level since 1989, according to PYMNTS.

The source reports that because Millennials came of age in a time of high unemployment and record foreclosures, they are wary of taking on credit card debt. The consequence is that it may be harder for that group to get a mortgage or purchase a car.

In addition to avoiding getting in over their heads when it comes to debt, millennials aren’t taking out credit cards in large numbers because they are contending with student loan debt and are afraid to spend beyond their means — something lots of people in the older generations have yet to learn. In addition to avoiding credit cards, millennials are also moving toward payment methods that do not require cash or credit. It’s the reason mobile payment apps are more popular among millennials then older consumers. And while the credit card companies hope millennials will change their attitudes and embrace credit cards as a payment method, the Fed doesn’t think that will happen anytime soon.

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