2022 Eye on Payments: Part 4 — Generations approach payments differently
Age is one of many factors that impact a person’s habits and preferences. There are often distinctive nuances in how different generations view their finances, make purchases and approach payments.
For the past five years, PSCU has set out to gauge the state of payment preferences among credit union members and other financial institution customers (“non-members”) through annual research. In our 2022 Eye on Payments study, PSCU explores the factors influencing consumers when it comes to their choice and usage of different payment methods – and how these factors may vary among different life stages and economic events. The study also provides key takeaways for credit unions to consider when making decisions and optimizing offerings to adapt to the evolving preferences and needs of their members to better serve them now and in the future.
In this fourth installment of our five-part blog series from our 2022 study, we explore the differences amongst various generations’ approach to payments.
Baby Boomers – Consumers Age 58+
The majority of Baby Boomer respondents report stability regarding their life events, personal finances and payment preferences. While 90% of people in this generation report they are worried about the current uncertain economic outlook, only 69% are concerned about the effect it will have on their personal finances. Boomer respondents favor debit (39%) and credit (40%) almost equally as their preferred payment method, however only 8% say they have applied for a new credit card through their financial institution in the last 12 months, which is far less than younger consumers. Among those who applied and received real-time approval or denial, 95% were at least somewhat satisfied with the process, more so than any other generation — perhaps because this generation doesn’t have as high of expectations for technology or the digital space as younger consumers do.
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