Millennials, who currently account for approximately 27 percent of the global population, are driving the growth of the digital payment market.
According to FinancialBuzz.com, a financial news portal, payments by cash are slowly fading as the emergence of digital, or cashless payment options, are quickly being adopted by consumers.
Technology is heavily integrated into the lives of millennials, as nearly 90 percent of them own or use a smartphone on a day-to-day basis. The group is identified to be heavily influenced by technology, while their buying habits are driven by instant gratification that smartphones, the internet and other modern conveniences provide.
Industry leaders are heavily investing into digital payments because of their convenience and technology-supported infrastructure. Consumers can easily make payments on their mobile devices at anytime and anywhere. With the growth of the market, consumers now have many payment solutions to choose from, whether its bank cards, net banking, e-wallets or mobile in-store applications.
Digital payments are also much more secure, especially now that tech companies are building software to improve security. According to data compiled by Mordor Intelligence, the global digital payments market was valued at USD 2.89 trillion in 2017 and is expected to reach USD 6.49 trillion by 2023. Additionally, the market is projected to grow at a CAGR of 13.7 percent during the forecast period from 2018 to 2023. The market is also being accelerated by the increasing adoption of mobile smart devices that support digital payment platforms, which is primarily being driven by millennials.
“What remains key is consumer choice,” said Bill Gajda, global head of Innovation & Strategic Partnerships at Visa. “Smartphones have democratized how companies innovate and placed the consumer back at the heart of the development process. People want a frictionless experience, taking the path of least resistance, just as long as they can remain secure. Millennials will continue to drive mobile money management and payments. More than nine in ten (91%) predict that they will be using their mobile devices for financial purposes in three years’ time, far above the national average of 72%.”