bricks and mortar) will begin to accept Venmo, PayPal, and other digital or mobile payments. Last year, the networks (Visa, Mastercard, American Express and Discover) began to explore a common user-interface for Secure Remote Commerce (SRC). Fast forward a year and the UK market is shutting down over 500 ATMs every month. Gen Z is accustomed to making purchases on their mobile phones and is not inclined to carry and use cash for purchase transactions. Successful retailers allow consumers to pick their favorite funding and payment choice. 20% stated 5x to 10x per week and 8% said they are using mobile payments more than 10x a week. Users have embraced their smartphones for everyday transactions like food at street food stalls, highway tolls, bus fares, taxis, subways, etc. Where possible, we have attempted to provide our conclusions and opinions. Walmart and other big merchants are worried that this will negatively impact their own application, raise their cost of card acceptance and continue to place them on the "outside looking in". Consumers demand convenience, privacy, and transparency and do not want to be forced into certain behaviors. that security is the main priority of 87% of consumers and merchants, provided that these do not add any Newer Fintech companies are leveraging data and information, exercising an entrepreneurial mindset, and utilizing technological benefits. that security is the main priority of 87% of consumers and merchants, Forecasting the Holiday Season: A Big Year for Gift Cards, Alternative Financing Enables Retailers to Boost Approval Rates and Customer Loyalty, Q&A: Ryan McEndarfer, PaymentsJournal and Anthony Mavromatis, American Express VP Global Customer Data Science & Platforms, Consumers, Billers & Banks, Oh My! It’s clear that money is a motivator to stem attrition, but for Gen Z the payment functionality of prepaid is an essential element in how it gets delivered and used. Cards will be around for years, but their shape and form-factor are undergoing a massive change. inclined to use APMs that offer more transparency and flexibility. The PSCU 2019 Eye on Payments survey revealed that cash was Gen Z’s second most preferred form of payment at 34%. Gen Z and millennials prefer mobile payment methods and apps while Gen X and Baby Boomers are more likely to utilise credit and debit cards. Ultimately, there is no escaping the advancement of Fintech benefits. The card has a name on it, as well as a chip, but it does not have a 16-digit number, an expiration date or an annoying security code. To read other Manole Capital notes, simply search in the Seeking Alpha website. Walmart may cry about its card acceptance costs, but it has a material advantage versus smaller merchants, in terms of routing and scale pricing. Last year, cash was still preferred in roughly 1/5th of transactions. Gen Z is Leading the Way to Alternative Payment Options. Answer: 48% Continuing on the theme of Gen Z financial behaviors, we found the answer to this question from the research firm, The Center for Generational Kinetics. There are other factors involved in no longer using a wallet (i.e. with relatively expensive fees, high annual percentage rates, and no guarantee Gen Z never likes to be without their phones. issuers and banks) will be protected. Dunkin' (NASDAQ:DNKN), CVS (NYSE:CVS), Walmart (NYSE:WMT), and other retailers have launched their own payment platforms to build that strong relationship with its customers. Some viable online payment options include PayPal or Stripe, secure payment companies that transfer funds from a user’s account to an online business. Google Checkout (NASDAQ:GOOG) (NASDAQ:GOOGL) was created in 2006 and Apple Pay was launched, with much fanfare, back in September of 2014. The most popular method, for the second year in a row, was debit at 54%. Credit cards were second at 35%. People love to simply use their cards at the register. This ensures that each transaction has been authenticated by the right person, from the right phone (i.e. Several major factors are holding back US mobile payment trends from widespread adoption. This is a huge change from last year, where 1/5th of our surveyed respondents reported "always" using cash to pay. pragmatic about their spending. The US leads the world in certain technological developments and advancements. We believe a one-click experience is a step in the right direction. Consumers should always be allowed to pay in whatever form they wish. 61% of our respondents use mobile payments 1x to 4x per week. chip-in-card technology)? We believe this is the rationale for Apple's new credit card, to drive Apple Pay adoption. This younger generation was born after the internet went mainstream and the oldest amongst them was only 10 years old when the iPhone was introduced by Steve Jobs. Way to go Mom & Dad! I am not receiving compensation for it (other than from Seeking Alpha). Please be on the lookout for our next note which will be focusing on the brokerage and trading space. However, there will be a few important steps that need to happen. Despite only getting 8% of our survey results, we believe that Zelle is the biggest threat to PayPal's Venmo product.