The traditional way to pay using credit cards is considered as an outdated method, especially by those who belong to the Millennial generation. Any eCommerce site that sells expensive items and those who have young adults as their target market must make a careful study of how to get those who do not like credit cards to purchase from them. The worldwide market must also be tapped as according to statistics, only 17 percent of the global population uses credit cards.
A decline of credit card owners
Gallup published a study a few years ago about how credit cards are losing their traction. The result shows a significant decline from the year 2008 to 2014 of people who own credit cards. Clearly, the heyday of credit cards as one of the most popular payment methods has passed.
The credit card payment option is still necessary
Though some might say that credit card payment processing for websites will be phased out completely, that prediction will not happen as credit is necessary for both individuals and businesses to prosper. The option for online credit card payment is still necessary though websites that do accept payments should integrate alternative payment methods to capture a wider market.
No longer wanting to make credit card payments
More people in the world have adopted alternative ways to pay that involve neither the need to carry around a plastic card. A lot do not want to have to make credit card payments nor to pay for high-interest rates.
Consumer lifestyle change
The consumer lifestyle that was depended on credit cards for decades seems to be no longer consider these as an essential financial tool. During those times, US credit card account holders used their credit cards to make ends meet, which is no longer the case for those who belong to the Millennial generation.
Not owning a credit card
According to a 2016 survey that was commissioned by Bankrate, young adults are highly unlikely to ever use the outdated online credit card payment methods. The results showed that sixty-seven percent of the respondents aged 18 to 29, who belong to the Millennial generation, don’t own any credit card at all.
The concerns that shaped decisions
This was the comment of the senior counsel about the research study results. According to a senior counsel of the Consumers Banking Association, these young adults grew up in an economic atmosphere that was tanking. These Millennials knew the great concerns that their parents had about their jobs, debts, and bills payments.
No longer wanting to deal with the struggle of payments
In 2010, US regulations about credit cards changed to tighten the requirements for approval for those who were under 21 years old. Nowadays, most young adults do not even bother to apply for a credit card. Those who belong to the Millennial generation avoid getting into debt and paying high-interest fees as that is the kind of struggle that they don’t want to deal with. There are financing options offered by several eCommerce websites which are short-term loans that have no interest. To provide financing options like these and alternative payment methods can enable a website to tap the Millennial market.