Not So Fast, Gen Z: Millennials Lead America in FinTech Adoption, FIS Research Finds
JACKSONVILLE, Fla.–(BUSINESS WIRE)–A new American study of FIS® (NYSE:FIS), a global leader in financial services technology, finds that millennials in the United States are more open to embracing new digitally-oriented financial experiences, including those enabled by financial experiences integrated, than the other generational groups.
Integrated finance is when consumers benefit from unique and personalized financial service experiences delivered to them when they need them by non-financial companies. Most often, consumers encounter these new financial services experiences in the form of in-app payments, such as on social media platforms where a purchase is made without leaving the platform, or in the form of Buy Now Pay Later offers at checkout. .
Young consumers enjoy seamless shopping experiences through social media apps:
55% of Millennials and 48% of Gen Z say they are likely to make a purchase directly through a social media platform in the next 12 months, according to the recent survey.
Meanwhile, Millennials (25%) and Gen Z (21%) said they believe buying on social media encourages more frequent and unplanned spending.
Millennials are most likely to live and transact in the metaverse:
While only 29% of all consumers say they’re likely to access the Metaverse in the next year, nearly half of Millennials (49%) and 35% of Gen Z say they will. will probably do.
Only 8% of Baby Boomers said they plan to use the Metaverse during this time, while 73% of Gen Z consumers said they would be willing to make a purchase in the Metaverse.
Those who are ready to make purchases in the metaverse over the next 12 months said they would be open to buying games or game tokens (52%), event tickets (38%) and virtual clothes/fashion (32%) within the metaverse.
Loyalty applications win in the eyes of younger generations:
More than half of Millennials (56%) and Gen Z (51%) prefer mobile loyalty apps over other forms of loyalty programs, such as physical cards, digital wallets or payment cards.
Conversely, 50% of baby boomers said they still expect to collect loyalty points on a physical card in their wallet, such as a coffee stamp card, within the next 12 months. .
Although Gen Z are digital natives, Millennials are more likely to embrace fintech and digital banking:
32% of Millennials say they are likely to bank with a fintech or neobank in the next 12 months, more than Gen Z (22%), Gen X (13%) and Baby Boomers (5%).
Millennials were also the most likely (24%) of any generation to say they are likely to use banking services, including investments and insurance, in the metaverse.
Even in person, integrated payment experiences like cashless purchases are particularly appealing to younger consumers, with 70% of Millennials saying they’d like to visit one in the next 12 months, followed closely by Gen Z (63%).
“While the general wisdom is that younger consumers are most likely to adopt new technologies, millennials, who have greater purchasing power, are leading the adoption of many new payments and services. digitally oriented financials, according to our new study,” said Taira Hall. , Senior Vice President Embedded Finance, B2B & Strategic Innovation at FIS. “Between the desire to leverage seamless shopping experiences like those on social media apps or to take advantage of the discounts and savings available through loyalty apps, the signal from millennials and Gen Z is that there is significant potential for businesses to integrate financial services into these channels.”
Learn more about consumer adoption of embedded finance with FIS research from around the world here.
About the survey
Ipsos was commissioned by FIS to conduct the survey in September 2022 of 1,000 US consumers from Gen Z (18-24), Gen Y (25-40), Gen X (41-54) and baby boomers (55+).
FIS is a leading provider of technology solutions for financial institutions and businesses of all sizes and in all industries globally. We enable the movement of commerce by unleashing the financial technology that powers the global economy. Our people are dedicated to advancing the way the world pays, banks and invests through our proven innovation, system performance and flexible architecture. We help our customers use technology in innovative ways to solve critical business challenges and deliver superior experiences to their customers. Based in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit www.FISglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISglobal).