PPRO study shows younger generations leading the UK alternative payment method adoption

By 8

A new study by PPRO has revealed that younger generations are spearheading the adoption of alternative payment methods (APMs), including bank transfers and e-wallets. The study showed that 42% of the Millennials and 35% of the Generation Z respondents have either used the above-mentioned methods of payments before or are confident using them.

UK consumers have shown an inclination toward digital payment methods for enabling a better transaction experience. 89% of them are confident using PayPal, while 31% have shown confidence in payment wallets such as Apple Pay or Google Pay. 68% of the Gen-Z consumers have shown a preference for mobile wallet technology.

“Local payment methods, such as direct bank transfers and pay later schemes, are considered new ways to pay in the UK. However, for online merchants that sell to consumers across borders, these local methods are the norm and must be offered at the check out to reach international consumers,” commented James Booth, VP Head of Partnerships, EMEA at PPRO.

The study also revealed that good publicity of the new payment methods in the news and social media is the biggest driver for Generation Z (31%) customers. 37% of Millennials consider merchant acceptance as their primary driver. However, security was ranked as the most crucial driver, with around 59% of the UK consumers viewing it as a significant influence.

“Traditionally, the UK and US alike have stuck to using credit and debit card payments for online transactions. However, for merchants, local payment methods (LPMs) are much more secure in comparison to card payments, due to chargebacks and being prone to digital theft and fraud. LPMs, such as bank transfers, are more secure and a lot cheaper for merchants to process,” adds Booth.