Are Baby Boomers the ideal FinTech customers?

A recent study by payments-as-a-service platform Modulr has found 65% of over 65s are open to using new financial services or payment methods for convenience.

The study – titled The Digital Now: Meeting your customer’s payment expecations – saw thousands of consumers surveyed on what they liked, disliked and expected of the best payment experiences available on the market.

It was found that almost half – 47% – of over 65s said their expectations of better payment experiences is due to doing more online shopping during lockdown restrictions. This may show that while Baby Boomers can sometimes be labelled as less comfortable with technology, they may be being overlooked by FinTech companies.

For example, the study found that 74% of over 65s say they use bank transfer and payment applications to make instant payments to friends and family. This is not far behind Millennials, where it was found 87% of respondents use this payment method.

The pandemic has also seen a sea change in attitudes towards payments. The recent survey detailed that a whopping 93% of over 65s say they now use contactless payments in stores with debit and credit cards. In addition, one in five of the over 65s expect Britain to be a cashless society in five years, with 71% claiming they withdraw much less cash now than they did a year ago.

A majority of those surveyed stated that there was no excuse for any brand not to offer the same kind of instant serves they enjoy in other areas of their life, however, currently, only a third of those surveyed see any kind of online service provider fully meeting their expectations when it comes to payments.

Recent research by Juniper Research found that the value of instant payments is expected to grow by 470% by 2026, with it expected to exceed $27.7trn.

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