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Young consumers willing to try new payments, American Express study finds

March 24, 2012

A new study by American Express found that 52 percent of young consumers aged between 18 and 24 are willing to try new payment technology, such as near field communications (NFC).

A new study by American Express found that 52 percent of young consumers aged between 18 and 24 are willing to try new payment technology, such as near field communications (NFC).

The innovation allows users to complete transactions without reaching for their wallet. Instead, customers who have downloaded a mobile application to their smartphones can pass the devices over an NFC-enabled credit card terminal at a retail store, restaurant or subway station.

Older shoppers were more reluctant about the new technology. Only 23 percent of those between the ages of 55 and 65 said they would be likely to try the new mobile credit card processing method.

Millennials may be more willing to adopt innovative methods because they are more digitally connected than older consumers. The study found 61 percent of younger shoppers owned a smartphone and 58 percent said mobile apps were a convenient way of making purchases online.

For both consumer demographics, security is a primary concern. Of those surveyed, 83 percent said it was the most important consideration. One participant in the study’s focus group worried that credit card information could become vulnerable when transmitted over NFC signals. Before the technology proliferates, developers and vendors need to implement security protocols and expand current PCI standards to the cover the new methods, reports ZDNet. 

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