Teens are one of the core demographics for banks and other financial providers to tackle. Unfortunately for them, these people flock to Apple Pay for payments. An interesting development, although it is worth noting cash still has strong adoption too.
Apple Pay Gains Momentum
It is not surprising to see a growth rate of adoption of Apple Pay among US teens. It is a convenient payment solution found on any modern iPhone. Moreover, it is a payment option that has gained broader acceptance by merchants, making it easier to spend money. However, it remains interesting to see Apple Pay build momentum over Venmo, the Cash App, and PayPal. Nearly nine in ten US teens questioned had an iPhone, creating a skewed picture.
Despite the growing popularity of Apple Pay and cashless apps, it is not the go-to solution for most teens. Nine in ten teens still use paper money and coins at least once a month. That is surprising, considering how society is pushed in the cashless direction first and foremost. However, paper money still provides more benefits than digital solutions, as cash is used virtually everywhere.
Surprisingly, cash use among US teens has risen by over 6% in the past year. That is a very unusual trend, given COVID-19 restrictions and a growing shift toward card payments globally. Moreover, there is much competition among payment apps, which should “help” erode cash usage further. That is not happening, even if “buy now, pay later” gains ground quickly.
Overall, the survey by Piper Sandler paints a bright future for Apple Pay. Gaining traction among teens is crucial to achieving long-term success, even though the landscape and preferences will continue to shift and evolve.