SAN JOSE, CA: Around a third (34%) of US millennials regard traditional credit cards as "old school", according to a recent multi-generational survey of more than 2,000 consumers.
PayPal, the global payments company, released findings that suggest millennials increasingly want to use smart technology when making financial transactions and this is a view likely to be held even more strongly by Generation Z.
According to the report, millennials get frustrated with the supposedly cumbersome process of entering 16 digits into a mobile webpage.
They are also much more likely than their parents – 50% versus 29% – to want credit products from technology-based companies, the National Retail Federation reported.
"It's not that they don't want credit, they just want credit that suits their lifestyle," said Amanda Christine Miller, head of global communications at PayPal Credit.
"The millennials love technology and are interested in using credit offerings from familiar innovators rather than traditional players," she added.
Millennials are becoming the fastest growing segment of PayPal Credit, Miller said, and the company has seen their number increase from 28% of users in 2013 to a third (33%) in 2015.
Online retailer Shop.com is a partner of PayPal Credit and its VP of strategic partnerships, Eddie Alberty, agreed that reaching millennials and other young generations will be essential for the future success of the platform.
"We know that to kind of be relevant in a few years, we need to get more of these younger shoppers engaged," he said.
"We're a loyalty model. So if we can get them engaged early on with a purchase, there's a good possibility that our marketing efforts will start to bring them back."
Data sourced from National Retail Federation, PayPal; additional content by Warc staff