New research about the future of payments by American Express shows that over half (52 percent) of consumers ages 18-24 are likely to try new technology-enabled payment tools as they become available compared with 23 percent of those ages 55-65, suggesting that the fate of emerging payments clearly lies in the hands of millennials.
However, all consumers agree that security is most important, with 83 percent of consumers ranking it higher than loyalty programs, benefits, fees/costs to use, user friendliness and convenience.
“Millennials will be key to the success of online and mobile payments, but above all else, the research shows that consumers want their payment tools to be safe and secure,” said Dan Schulman (pictured above), president, Enterprise Growth at American Express.
“At American Express, we agree. That’s why we’re developing products and pursuing partnerships for the new digital economy that match technological innovation, a seamless customer experience, and the service, benefits and security of American Express.”
The findings are from recent research commissioned by American Express, including a quantitative survey and focus groups that explored U.S. consumers’ attitudes and behaviors with current and emerging payments, such as payments made by prepaid cards, mobile phones, digital wallets, and near field communication (NFC), commonly referred to as “contactless payments.”
Consumers want trusted institutions – not Internet or social media companies – to develop new payment methods, as 62 percent of consumers prefer financial institutions take the lead on new payment methods, rather than wireless providers and internet companies.
This also might help suggest why more than three-quarters (77 percent) of consumers are not very confident that social media companies would protect their personal financial information, according to American Express research, which released its findings Thursday, March 22.
Enterprise Growth, a new business unit at American Express, was formed in late 2010 to expand the company’s footprint with new technologies, new types of customers, and new geographies.
The quantitative research survey was conducted by Ipsos Research and commissioned by American Express. The survey was conducted online between January 19, 2012, and February 2, 2012, to a nationwide sample of 1,600 adults ranging in age from 18-65.