Alternative Finances

Millennial Consumers Twice As Likely To Use A Mobile Wallet

A recent survey by FICO indicates that Millennials are more likely to embrace alternative banking services than their older counterparts.

Among Millennial consumers, 32 percent report they are likely to use mWallet services within the next year; among consumers over the age of 35, only 16 percent have similar plans.  The survey further found that a majority (56 percent) of younger Millennials (18-24) are already using alternative payment services like PayPal and Venmo.

“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.”

When all respondents’ answers are averaged together, 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. The averaged results also found that 39 percent expect to use an alternative payment service in the next year, and 21 percent said they currently use alternative payment services.




The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.