Millennials (born 1981–1996) and surprisingly, Gen X (born 1965–1980), are driving the adoption of alternative payments such as digital and smart device payments as well as virtual cards. This is according to FNB’s analysis of alternative payment adoption trends among its customers.
FNB reveals that millennials make up 64% of virtual card users and 57% of all digital payments. Gen X follows with 32% and 28% for virtual cards and all digital payments, respectively.
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Gen Z, those born between 1997 and 2012, are the third highest users of digital payments with 12%, but they lag baby boomers (born between 1946 and 1964) in the adoption of virtual cards.
Baby boomers make up 3% of both digital payments and virtual card users, while Gen Z accounts for 1% of virtual card users. Adoption among Gen Z is expected to increase rapidly over the next few years due to their renowned appetite for new technology.
According to FNB Card CEO, Chris Labuschagne, their customers have activated over 3 million virtual cards with over R6.6 billion in spend since the launch of the payment solution last year.
Banks such as FNB, as well as Nedbank, Absa and Standard Bank, offer the contactless ‘Tap to Pay’ transaction on digital wallets such as Apple Pay, Samsung Pay, Fitbit Pay, Google Wallet and Garmin Pay.