A new study has underscored the evolving payment preferences of millennials, with mobile wallet first convenience and security emerging as dual imperatives.
Millennials drive mobile wallet adoption
Conducted by PXP in partnership with Censuswide, the survey reveals that millennials are reshaping how businesses must think about payment strategies – across sectors from retail to travel.
Millennials – typically defined as those born between 1981 and 1996 – are increasingly gravitating towards digital wallets, especially those that support multi-currency functionality.
These tools are particularly valued during international travel, a use case cited by 64% of respondents.
Yet convenience alone is not enough: 40% of millennials ranked security as their top concern when selecting payment methods, illustrating that this generation is as focused on trust as it is on tech.
Despite the mobile wallet surge, traditional payment forms remain entrenched.
Debit cards, for example, are still the most common option for grocery shopping, with 40% using them regularly.
Credit cards dominate for big-ticket online purchases, preferred by 24% of millennials.
Cash, though in decline, persists – particularly for social spending. One in five millennials report using cash when dining out, often to split group bills.
The research also shines a light on the millennial propensity for online shopping: 80% now conduct the majority of their purchasing activity via digital platforms.
Travel bookings mirror this trend, though there is a notable split in method.
While 38% opt for debit cards for hotel payments, 26% use credit cards to access added perks such as insurance and rewards.
PXP Group CEO Kamran Hedjri contextualised the findings: “Millennials want payment options that reflect their mobile-first lifestyles without sacrificing security.
Our research shows that innovation and trust must go hand in hand.”
The study also identified emerging behaviours with commercial implications.
Some 38% of millennials are more likely to shop with retailers that offer exclusive discounts based on payment method, while 35% express a preference for personalised shopping experiences.
Incentivisation, too, plays a role: 28% favour payment methods that include rewards or cashback.
Conversely, 36% cite hidden fees as their chief frustration – a key insight for firms seeking to build trust.
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