How do different age groups prefer to pay for purchases in the United States? There are several ways to pay for purchases, and different people prefer each payment method. People may pay for different types of purchases in different ways depending on convenience and practicality. Businesses have tried to offer as many ways to pay as they can for their customers. Different age groups have favorite ways to pay for their purchases, and they have different preferred ways to shop.
Overall, cash is the favorite way to pay for small to medium purchases. Paying with cash has some costs including theft, misplaced change, time spent depositing and retrieving dollars, and ATM charges. These costs can add up to $200 billion dollars in America annually. Different age groups prefer to pay in different ways.
Each Age Group Has Unique Payment Method Preferences
- Senior citizens use several methods to pay for purchases including American Express and paper-based checks. AMEX is appealing for its prestige with high-income earners. It is also more expensive than regular credit cards and has high annual fees. AMEX is not as widely accepted as regular credit cards. 68% of those over the age of 65 prefer to use checks and the postal service to pay bills. The downside of checks is the cost of envelopes, processing, printing, stamps, and the inconvenience of going to the post office or mail box.
- Middle-aged adults or the Generation X group, prefers plastic or credit cards for purchases and bill paying. Plastic allows people to indulge in expensive buying habits and then pay over time. The problems involved in credit cards include the high fees and possibility of data breaches. The new EMV chip credit cards are confusing to some in this age group. Many in the middle-age group still use checks for part of their purchases and payments.
- Generation Y contains those born in the 1980s and 1990s. This group has the most varied payment choices. They are old enough to have experience with credit cards and checks and understand their value. They are young enough to experience the appeal of digital technologies like PayPal, online shopping, and mobile payments. Also the generation Y shoppers rely heavily on cash.
- Millennials, the youngest group of shoppers, lean toward electronic payment methods including smartphones, PayPal, and the internet. They also like prepaid cards. Though these may seem inconvenient because of the need to load them periodically, many young people do not have well-established credit histories because of their young age. They may not qualify for more traditional forms of plastic. They also use cash for small purchases.
What Are The Best Payment Methods For Businesses To Offer?
Merchants and other businesses should offer as many payment methods as possible. Keeping track of the most common payment methods of your customers may help business people decide which forms of payments are most important to carry. Some merchants object to the merchant fees attached to some credit cards; others worry about the safety of accepting personal checks. Business people can get more payment from support by visiting this website.