Study: Millennials don’t want plastic
Physical credit cards may be going the way of DVDs and floppy disks.
According to new analysis from Bankrate.com cited by PayPal, 63% of millennials do not have a credit card. However, that does not mean they are abandoning credit-based purchases.
Millennials are now the fastest growing segment of PayPal Credit shoppers, rising to 33% of the total in 2015 up from 28% in 2013. Rather than shunning credit altogether, this influential group is turning to alternative credit services to help manage their finances.
An additional survey of millennial consumers conducted for PayPal by Koski Research showed that millennials are nearly twice as likely as baby boomers (50% compared to 29%) to use new credit offerings from “cool” innovators rather than traditional credit tools.
More than one-third of millennials consider credit cards to be “old school,” and they are more likely to be annoyed by the processes of using traditional credit cards online than baby boomers (29% compared to 21%) [
In addition, nearly 70% of millennials are more likely to trust companies that are technology-based to keep their credit data and transactions secure. Millennials are most likely to use online credit to pay for clothing and accessories (45%), electronics (33%), and travel (27%) through the end of this year.
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