Adoption of Digital Wallets a Generational Difference, Survey Suggests

A survey of North American bank customers conducted for FICO has found that Millennials are embracing alternative banking services in greater numbers than older generations.

Twice as many Millennial respondents (32 percent) report that they are likely to use mobile wallet services like Apple Pay or Google Wallet in the next 12 months as those who are 35 and older (16 percent). Additionally, 56 percent of younger Millennials (18-24) report that they are already using or very likely to use alternative payment services like Venmo and PayPal.

Among all respondents, 18 percent said they intend to use a mobile wallet in the next year, whereas just 5 percent reported that they currently use a mobile wallet. 39 percent expect to use an alternative payment service in the next year; and 21 percent said they currently use alternative payment services.

“We already know that Millennials are inclined to conduct common banking activities through the digital channel,” said David Vonk, who leads the North American banking practice at FICO. “While alternative banking may still be in its infancy, it has the potential to grow rapidly, especially as the Millennial generation enters its prime and pushes these services to the forefront of its banking agenda.”