Skip to main content

Millennials And The Adoption Of Third-Party Payment Apps

Millennials may not understand the difference between a bank and a credit union, but when it comes to third-party payment apps, they know their stuff.
Individuals ages 18-to-34 are a technology-first, convenience-driven generation. Being able to access anything at any time is important for millennials. That’s why they prefer mobile for everything? including banking.
According to a FICO report, 80% of millennials do most of their banking activities online and through mobile apps. Through bank and credit union apps anyone can check account balances, deposit checks, pay bills, and transfer money between accounts, all from their phone.
Millennials still aren’t satisfied.
Third-party payment apps like Venmo and Square Cashallow users to make real-time mobile payments without fees, making them instantly popular with young adults.
Pay Pal-owned Venmo is particularly popular, as displayed by its dramatic 126% payment volume increase over the span of one year. Not only has Venmo made it possible to immediately transfer money from one account to another (though not withdraw), it has created a social media aspect to a payment method.
As 22-year-old DePauw University graduate Sheinnera Gerongay says, “It’s more social. You can put a funny tag on your payment whereas a bank app is more serious.”
I’m not the biggest believer in Venmo but sometimes boredom takes over and I find myself scrolling through my Venmo feed to see which of my friends transferred money to whom and the entertaining sayings attached to the transactions.
Aside from that, Venmo is convenient and available. Says Nathalia Melo, a graduate student at the University of Alabama-Birmingham, “It’s an easy fix when I forget my card or I pay for someone, instead of an ‘I owe you’ and then the person never pays you back.”
Personally, I don’t love Venmo or other apps of its kind. I use them because it’s easy and because everyone else does. As skeptical as I am of the security and social nature of the app, I prefer Venmo over using cash. I hardly ever carry cash with me anymore and I can’t pay a friend back for late-night Wendy’s runs with my debit card.

Why Is This Important For Credit Unions?

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Digital Payments Lead the Way Globally: Key Insights from Worldpay Study

According to a recent Worldpay study, digital payments are rapidly becoming the preferred choice worldwide. The research highlights significant shifts in consumer behavior and payment preferences, driven by technological advancements and the growing acceptance of cashless transactions. Key findings from the study reveal that digital payments now account for a substantial portion of global transactions. Mobile wallets, contactless payments, and online banking are gaining traction, reflecting consumers' desire for convenience and speed. This trend is especially prominent in regions like Asia Pacific, where mobile payment adoption is leading the charge. The study also emphasizes the importance of security in fostering consumer trust in digital payments. As fraud concerns continue to rise, businesses must prioritize robust security measures to protect customer information and enhance the payment experience. Moreover, the transition to digital payments is not just about c...
Post a Comment
Read Complete Article HERE>»

Embracing ARMs And Battling Members’ Misconceptions

With adjustable-rate mortgages back in fashion, credit unions are educating members about the ins and outs of these products, dispelling misunderstandings along the way. With housing stock low, home prices high, and interest rates showing no signs of coming down, many credit unions are turning to adjustable-rate mortgages to help would-be borrowers find a home. ARM loans gained a bad reputation after the 2008 housing crisis and the Great Recession, but credit union leaders insist that with the right education and a clear understanding of how the product works, adjustable-rate mortgages can be an ideal solution for would-be homeowners. The Big Picture53% of those who don’t own a home believe homeownership is out of reach, according to a study from Northwestern Mutual . 58% of millennials feel this way, but roughly half of baby boomers and Gen X share the sentiment. According to Federal Reserve data, the average price of a home topped $510,000 at the end of 2024. That’s 32% higher than f...
Post a Comment
Read Complete Article HERE>»

Jim Nussle To Retire From America’s Credit Unions

  WASHINGTON—America’s Credit Unions President and CEO Jim Nussle plans to retire from the trade association, ACU announced. ACU said Nussle did not specify an exact date for his retirement but rather expressed his desire to provide the ACU board the “full flexibility” to conduct a search for a CEO over the next several months on a timeline of their choosing, and to ensure his ongoing efforts to champion the organization’s advocacy agenda.   Jim Nussle “Serving credit unions is a deep personal privilege. After a long career in advocacy from both sides of the policy making table, leading CUNA and the honor of helping to create and lead America’s Credit Unions, it is soon time for me to pursue new interests in retirement. My announcement today is intended to provide the board the time to conduct a thorough national search to find the next leader for the Association,” Nussle said.  “My full and ongoing focus will be on our intensive credit union advocacy efforts to prot...
Post a Comment
Read Complete Article HERE>»

Havoc.’ ‘Debacle.’ Analysts See Rough Road Ahead for Autos With Tariffs

WASHINGTON–What’s known: should President Trump’s tariffs remain in place, new and used vehicle prices are going to get even higher. The unknown: Will members stop buying cars, move from new to used, or given how many buy cars according to payment, move to less-expensive models? The tariffs also may create challenges for credit unions that serve some autoworkers. All of those questions and more remain much in flux with analysts predicting  auto prices could rise by $5,000 to $10,000 per vehicle and wreak havoc on the market as the result of 25% import tariffs on vehicles and auto parts.   As the CU Daily reports separately, however, Black Book believes automakers will spread out the incremental cost of tariffed vehicles across their entire showroom to retain relative vehicle transaction prices. Still, the company expects tariffs to push the average transaction price on vehicles to more than $50,000. ‘A Debacle’ “The tariffs are a debacle of epic proportions for the a...
Post a Comment
Read Complete Article HERE>»

Zelle Discontinues Standalone App, Shifts Users to Bank and Credit Union Platforms

SCOTTSDALE, Ariz.—The standalone Zelle app is no longer available for sending or receiving money. Users are now encouraged to enroll through a participating bank or credit union’s app to continue using the peer-to-peer payment service, PYMNTS reported. Zelle had announced in an Oct. 31  blog post  that it would make this change, and it completed the move as of Tuesday (April 1), according to a frequently asked questions  page  on its website PYMNTS said/ “More than 2,200 banks and credit unions across the U.S. now offer Zelle through their mobile app or online banking site,” the company said on the FAQ page. “As a result of this growth, in October of 2024, we announced that we are removing the ability for users to send or receive money using the Zelle app starting April 1, 2025.” PYMNTS noted that the page advised users of the Zelle app to visit a “find your bank” page on its website to see if their bank or credit union offers Zelle; to...
Post a Comment
Read Complete Article HERE>»