How Millennials Are Facilitating The Growth Of eCommerce
Millennials (those born between the years 1980-2000) are the largest generation in history and are rapidly approaching their prime spending years. Being the first generation of “digital natives”, their affinity for technology makes them strong advocates of the evolving payment movement. From mobile payments to e-wallets to eCommerce, millennials are paving the way for generations to come.
Technologically Savvy
Technology is not the same novelty to millennials that it was and still is to generations past; they’ve come to expect and embrace innovation. Technology is not just a nice-to-have in their lives, it is their lifeline. Millennials are constantly plugged in:
- 80% of millennials sleep with the cell phones next to their bed.
- 87% of millennials use between 2-3 tech devices at least once on a daily basis.
- 39% of millennials check their device within 5 minutes of waking up (not including the alarm function), and that number jumps to 82% within 1 hour.
Easy Adoption Of Technology
Millennials’ digital immersion means they are more receptive to new innovations; 85% of millennials say they are open to trying new banking and payment technologies. Millennials are 2.5 times more likely to be early adopters of technology than older generations.
Purchasing Power
Millennials are a force to be reckoned with; they are the largest living demographic group in history, consisting of more than 80 million. Many millennials are entering a period in their lives where they have increasing financial freedom and as a result, have significant buying power.
They control $200 billion of direct purchasing power and influence over $500 billion in spending done by parents and grandparents.
Rapid Decision-Making
The convenience that technology provides is key for millennials. They have grown comfortable with a world that delivers instant results and gratification and expect it in every sliver of their lives. While convenience is key, speed is paramount; 83% of millennials are more likely to make impulse purchases on payday or while shopping online than any other age group. Online merchants who make site navigation easy and simplify the checkout process (reducing cart checkout fields) will attract millennials’ business and loyalty.
The Opportunity
As technology continues to advance, millennials will expect it to simplify their shopping experiences and payment processes, specifically when it comes to speed, choice and, personalization. Millennials’ easy adoption of technology, expanded purchasing power, and rapid decision-making creates a unique opportunity for online retailers.
Their inclination for technology means eCommerce sites would do well to adopt an omni-channel approach. Ensuring your online store is mobile and tablet friendly means that millennials receive the same experience wherever they buy.
From researching to buying, millennials move at a rapid pace. Recurring billing is another option that will not only reduce front-end costs, but help millennials make faster decisions and purchases. Partnering with a flexible payment processor that offers multiple payment platforms (recurring billing, eCommerce platform, and mobile) will get you more access to the millennial wallet.
Conclusion
The profusion of millennials and their zeal for technology lend tremendous influence in driving both mobile and eCommerce forward. Payfirma’s CEO, Michael Gokturk, speaks to this, “Today’s consumers are adopting new payment technologies, like Bitcoin or BitGold, and payment methods, like mobile payments, at a rapid pace. Businesses that allow their customers to pay any way they want see immediate increases in sales and customer loyalty. This is the heart of Payfirma’s purpose – to enable businesses to rapidly adopt payment technology without having to build new infrastructure or incur significant implementation costs. It’s called multi-channel payment processing and it helps businesses grow.”
