Debit card payment trends: a real-time trend

Many payments and banking industry leaders are baby-boomers, and it’s my observation that several are making the mistake of assuming that millenial consumers are like them when it comes to information processing. As a result, much investment in new payments and electronic financial services products is wasted. With use of research data that segments preferences and behaviors by age such wasted investment is avoidable.

Example: by and large, young people don’t eschew credit for debit because they lack access to the former. Rather they choose debit because it matches the way they process information: in real-time. (Payments is simply about information processing, right?)

If I copy my 20 year old son on an e-mail (a non-real-time interaction method) I must communicate with him via the real-time method of texting to tell him the message is there. Otherwise, he won’t bother to pick the e-mail up (none of his friends use e-mail, so why would he?). Young people process information in ways that are more real-time than us older folk, and it’s time us industry leaders consult the data to understand this.

Credit won’t die anymore than will cash, yet the import of real-time information to the growth of debit is a long-term trend that many executives would benefit from understanding more fully. If might not matter to the guy that drives a Buick or Harley, but to kids with Scions it’s pretty much a big deal.

I’ll be presenting on this topic at our subscriber webinar at 10 PT (1ET) today, and playbacks are available.

Category: Dynamic Payments


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