Millennials driving retail innovation as spending habits shift
Millennials are increasingly adopting new payment methods as their spending habits shift dramatically away from credit cards.
Young UK shoppers have become “credit-averse” and are instead adopting innovations like digital wallets to help them budget, according to a major new study conducted by YouGov for Clearpay.
Credit card usage has plummeted among millennials, with just 51 per cent of millennials owning one compared to 71 per cent of Gen Xers (aged 35-55).
Furthermore, just seven per cent of millennials have any interest in owning a credit card.
YouGov suggests this could be down to rising levels of student debt, with 75 per cent of current and former students aged 18-24 already accruing debt.
“These findings support similar research we’ve done in the US and Australia where, if anything, young people are even less likely to own a credit card than in the UK,” Clearpay’s chief executive Carl Scheible said.
“The financial crash left scars on all generations and traditional banks and credit providers lost trust. In the UK young people in particular are looking for new ways to budget and make purchases without falling into debt.”
Instead millennials, which will account for 35 per cent of the global workforce by 2020 and currently represent a fifth of the UK’s population, are turning to technological innovations to help them save.
A third of millennials currently use digital wallets, 10 per cent more than Gen X, while 90 per cent say they actively manage their money.