Millennials have already shown themselves to be comfortable with the emergence of new technologies in finance, but which methods do they favour when they are making payments themselves?
It’s worth remembering that, in this respect at least, many transactions are governed by the seller and how they choose to accept payment – or, in some cases, whether there is any alternative to cash.
Looking first at person-to-person payments (P2P) – to friends, family and other individuals – 64% of millennials in Malaysia use cash, while it’s 62% in Singapore and 57% in Thailand. Bank transfer is the next most commonly used method in all markets followed by credit/debit cards. However, at least one in 10 millennials now make P2P payments via a mobile platform.
"When I buy street food, I have to pay cash because the food vendor won’t accept any other form of payment. But when I buy groceries at the supermarket, I can pay cash or credit card or debit card because they offer these choices."
Singaporeans are the slowest to make the switch to mobile with just 11% of P2P payments made this way, but it is more common in Malaysia (14%) and Thailand (12%).
For sending payment to an individual in another country, the picture is much more complex. Just over half of millennials need to make international P2P payments and they use a variety of methods to do so. In Singapore, millennials are most likely to use bank transfer (43%) followed by credit/ debit cards (33%), but money transfer companies at 22% and PayPal at 20% are now a favoured alternatives for a sizeable proportion.
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