Millennials have major spending power. They are spending $600 billion per year, and by 2020 they’re expected to make up 30% of all retail sales. With that in mind, it’s important to consider what millennials’ spending preferences are.
Millennials are Starting to Use Credit Cards
The great recession played a big role in discouraging the use of credit cards among millennials, as they witnessed family and friends going into debt. At the same time, millennials were feeling burdened by a growing number of student loans, and many are wary of going further into debt.
However, as millennials grow and become more financially-savvy, this rejection of credit cards is starting to change; the number of credit cards held by millennials has increased by 52% since 2010, and the average card balance has grown by 32%. While it’s likely that this will continue to be a gradual transition, we now know that credit cards are not going out of style. With the added fraud protection now provided by EMV chip cards, adding a credit card processing terminal can be a valuable asset to your business.
Millennials Love Online Shopping
Although brick-and-mortar shops aren’t going away anytime soon, millennials are frequently choosing to make purchases online, with digital purchases accounting for 54% of total sales. Mobile phones are an important factor in this, as the majority of these online purchases are made on smart phones. With so many different shopping platforms available, millennials expect to have a seamless and integrated experience. This means having the ability to easily switch between a smartphone, a laptop, and a physical store. Thankfully, there are a variety of POS systems that make it easy to offer this integrated experience.
Mobile Payments are Growing in Popularity
While mobile payments like Apple Pay and Android Pay are slow to take off, they’re definitely generating interest. Millennials use mobile pay more than any other group, making up 72% of all users. Consumers are increasingly interested in the benefits that mobile wallets could provide, such as loyalty cards and coupons. Card processing systems with mobile payment compatibility are now on the market.
Millennials are the most brand-loyal of any generation. They want a personalized experience in which the retailer will cater to their interests, and 95% of millennials actually want the retailer to reach out to them with offers. Loyalty programs are an important way to satisfy this preference, and new POS systems like Clover offer apps for loyalty programs and customer mailings.