Gen Z: A Day In The (Payments) Life
There has been an immense focus placed on the ‘Millennial’ generation, and for good reason, as they have become a driving force in the future of payments. This generation looks to technology to solve their payments needs—and it’s all about the factors of convenience, speed and flexibility. And as a college student, my typical daily ‘payments routines’ reflect these factors. With that, I wanted to share a snapshot, which I think demonstrates how my own demographic is influencing the payments industry.
8:00AM: Morning activities
As I brushed my teeth, I noticed I was running low on hand soap, so with one click from my Amazon Prime account, I had two bottles on their way. I glanced at my email, and I noticed my favorite clothing store was having a sale. So, I logged into my account and purchased the sneakers I had been eyeing for over a month. I do most of my shopping online; I usually find the biggest selection at the best prices, and with digital payment methods saved in my profile, the buying experience is effortless.
I had time before class, so I booked an Airbnb for an upcoming trip to Chicago. Payment for services in the sharing economy (such as Airbnb) is quick, simple, and transparent – without hidden fees; I could reserve a room quickly and safely using my Visa Debit card.
I drove to class, and I parked at a meter. Using a parking app installed on my phone, I paid the meter for two hours. I stopped at a Starbucks on the way to class, where I used the Starbucks mobile app to purchase a tall cappuccino. With a simple tap of my phone, my order was waiting for me as soon as I arrived, and seconds later, I was on my way to class with time to spare.
After class, my roommates and I decided to order Blaze pizza. I ordered and paid for our pizzas online, and because I already had an account set up with my payment details, the process was quick and easy. Fifteen minutes later, my roommate was picking up our pizzas! My friends reimbursed me with the Venmo app, which transferred money immediately into my account. Using Venmo to exchange money made it easy for everyone to pay; it’s my top choice for P2P transactions. Soon mobile payment apps such as Venmo will be able to provide real-time payments, with instant performance and stronger security.
As I drove to work, I remembered it was payday. I have my paychecks direct-deposited, and I use online banking to manage my money. Being paid digitally means I have immediate access to my money, and since I’m accustomed to immediacy and constant access to services, mobile banking is ideal for me. The emerging technology of Open Banking will allow consumers access to bank data in real time, providing further options for securely managing wealth through online banking solutions. I will be able to forecast based on my previous transactions, which will be invaluable for budgeting. For instance, recognizing that I get paid on the 14th and have rent due on the 25th, the Open Banking platform will be able to provide and predict accurate information to help me figure out how much to save and what discretionary income will be available.
After work, I stop by the campus dining hall for dinner. I swipe my Student ID card, which was prepaid at the beginning of the semester, and before you know it I’m loading up on food.
8:00PM: An evening with friends
My roommates and I invited friends over. We were sitting around listening to music from our Spotify subscription through our Bluetooth speaker, when I heard a song I liked on my friend’s playlist. I used Shazam to find out the artist’s name, and went into my iTunes app to buy the song and add it to my playlist. The song downloaded immediately, as my payment information was already registered and stored in my account.
Later, using the subscription service PlayStation Network, we were playing Fortnight online against friends by. Once we’d dominated at video games, we decided to enjoy some nightlife downtown. We used the Uber app to call for transportation. Not only are ride-sharing apps convenient, but the cost is transparent, payment is simple, and communication is easy. By having an account, my payment information was saved, and the company offers direct rewards and promotions right through the app.
We ended the night back at our apartment watching episodes of The Office through my Netflix subscription service. Netflix, Xbox Live, and Spotify are all streaming subscription services we use frequently, making small, monthly payments for custom access to all our media content needs.
An (electronic payments) revolution is among us, with technology rapidly changing the way consumers, especially the younger generation, make payments. Easy access to a variety of payment technology solutions makes sending and receiving money easier and more efficient. Even though some trepidation still exists in the digital payments market, the rapid adoption of digital payments technology is paving the way for them to become the norm.
Interested in finding out more about the mega trends that are shaping payments, or emerging role of real-time in the global payments landscape? Register to secure your spot in our upcoming live webinar: 2018 Global Payment Insight Series - North America Edition: A Conversation With Ovum & ACI, Thursday, May 29 at 12:30pm ET.
Related Blog Posts
Sibos Preview: The Five Trends Transforming Real-Time Payments
Real-time is now a reality, with more than 30 schemes live around the world. And real-time is in the spotlight as banks and financial service providers make their way to Sydney for Sibos 2018. What better time to look ahead at the key trends that are going to shape the ongoing development of real-time payments.
Winners and Losers in the Regulation Vs Competition Debate? How About New Business Models?
As Summer has abruptly turned to Fall, I have found myself daydreaming of a European vacation (and yes, I realize it’s Fall there too… or rather, Autumn). Maybe it’s the Instagram feed full of friends on a summer sojourn to Italy, France, or Germany, or the constant barrage of Premier League kickoff commercials on the NBC Networks (Let’s Go Gunners!), but yesterday it was something else entirely that had me drifting off into a memory-induced Nutella-crepe state of euphoria.
API Management: The Reason Digital Open Banking Can Fly
When it comes to thinking about the different roles that an API Manager can play for an organization, I personally think that an airport provides the perfect analogy. The customer is the passenger, the third-party organizations using a bank’s APIs are the airlines and the airport itself is the bank. I also think this analogy helps to visualize the variety of API management capabilities – including the role of an API gateway.
The Mexican Fintech Revolution – ¿Qué onda in Open Banking?
Mexico has joined an elite group of nations, being amongst the first to pass open banking regulations. Specifically designed to open up its financial services and technology sector, the so-called ‘Fintech Law’ appears to have taken notes from PSD2, UK Open Banking, Singapore’s ‘organic’ approach, and others – and balances these against Mexico’s unique context and aims.
ACI’s Lu Zurawski, one of the industry's foremost open payments experts, and Sonia Gomez, a Latin America payments authority, discuss this balancing act; including the drivers, the regulation and the potential benefits.
Working Up An Appetite for APIs in Australia
This week ACI hosted the latest installment of our #paymentsforbreakfast forums in Australia, with the early birds catching the open banking worm in both Sydney and Melbourne.
Given the similarities between the Australian and UK open banking movements, we enticed ACI’s UK-based Lu Zurawski (Solutions Practice Lead - Retail Banking) to Australia to share his learnings from being heavily involved in the UK Open Banking working group.
APIs and Cash Management (Harnessing the Hammer, Part 2)
In my last blog post, we talked about the hammer and the nail; the hammer in this case being open APIs, and the nail being the market need to adapt to changes in customer behavior and expectations from our commercial market. We laid out why the US is in a different position when it comes to open APIs—it has to do entirely with the regulatory environment, which is allowing us to start with the largest revenue opportunity first. Finally, we challenged you, the reader, on how you can begin on your journey. And that is where we are going to pick things up. What steps can you take today, and what use cases can you explore as we start getting our hands dirty?
Three Key Takeaways from the Latest Payments Insight Survey
Blinkist is a reading app that summarizes books into 15-20 minute reads; these reads are called “blinks.” It’s helpful for a few reasons – I can scan books before I purchase them, I can get new ideas without having to read the full book, and I can learn to summarize information. It’s safe to say that I (and probably many who are strapped for time) are a little obsessed with Blinkist! So here I present my own summary – in three key takeaways – of the new ‘2018 Global Payments Insight Survey: Retail Banking,’ which finds that 51% of banks are increasing spend on payment technology.
The Hidden Cost of Digital Payments for Retail Payment Players
It is not exactly breaking news that non-cash payments are on the rise globally, with column inches dedicated to the launch of digital financial-inclusion projects. But going cashless is not only a challenge for humanitarian endeavors, or developing countries. We all agree that removing cash from the system will save payments players big bucks in the future, but we must also consider the immediate impact of digital transformation on the legacy infrastructure of the powerhouses of the payments ecosystem.
Why User Engagement Matters, Even for Enterprise Applications
As a User Experience Designer at ACI, I spend a lot of time watching users interact with my designs. I need to make sure our solutions work properly, but lately I’m more interested in how they make my users feel. Engagement is a dominant concept in user interface design right now. It’s important because positive emotional experiences often lead to increased use and loyalty.
Five Payments Trends to Watch in 2018 [Part 1]
2018 is set to be a year of rapid change and new challenges for payments players. The floodgates are opening with PSD2 and UK Open Banking coming into force, bringing an onslaught of new competitors and potential partners. Whether evolution is mandated or market-driven, banks and processors are facing a critical year in their long-term success.