“There’s a Revolution in FinTech… And Millennials Are Driving It” written by Tatum Pollard, Marketing Specialist, YapStone.
I’ll admit I’ve Googled “how to write a check” on more than one occasion. But I’m not alone – according to recent reports from Google, this search has increased fivefold over the past ten years. Raised on N’Sync and Instant Messenger, I come from a generation that has always been concerned with seeking the most convenient and efficient ways of doing things – which is why out of the 92 million millennials in the United States, less than half of us even own a checkbook.
So it seems strange that if we’ve evolved from the dreary days of dial-up internet and VHS, we’re still forced to dig up our checkbooks to pay for our biggest monthly expenses like rent and utility bills. Despite more companies utilizing digital payments, just a few years ago U.S. businesses were still paying half of their bills by check – costing them between $26 and $54 billion in 2010.
But we millennials make up the majority of the U.S. population as well as the renter population and our demand for convenience is forcing traditional companies to change the way they think and laying the foundation for startups to thrive… all in, we are the driving force behind change and disruption in all categories – especially Fintech.
No more checks, please. Out of the small group of millennials that actually own a checkbook, not a single one of them prefers to pay with check. If we’d rather text than actually make a phone call, then we definitely prefer using a mobile app instead of writing a paper check to pay rent.
Which is why RentPayment created a mobile app that allows us to do just that – renters can pay rent directly to property managers with credit, debit, or echeck. The snap-to-add feature uses ORC technology that allows users to setup an account and payment method in seconds, and the Autopay feature allows renters to set recurring payments – so we can pay rent without ever thinking about it.
Give us some credit. Or debit. We don’t really care so long as it’s not cash or check. According to Consumer Credit, 80 percent of consumer spending last year was cashless, proving that plastic payments are preferred.
And for millennials, debit has been the way to pay, with 100% of us using a debit card for everyday purchases.
But according the Huffington post, overall credit card use is on the rise for the next year. They haven’t been our most popular mode of payment, but credit cards create a great buffer for millennials too swamped in student loans to afford large expenses at the time of purchase. Earning points and building credit also incentivize us to pay with plastic, and although some of us aren’t entirely sure exactly what our credit score is, we’ve heard it’s important, which is why RentPayment provides free credit reporting when renters pay with credit card.
Go mobile. Over 85 percent of us use smartphones, so it’s no surprise that we prefer anything that can be digitalized – including the way we pay. 4 out of 5 millennials prefer to manage their money through mobile means. Given our multi-tasking, busy nature, we will do whatever it takes to avoid having to stop what we’re doing to find our checkbooks and write out a check.
The RentPayment mobile app was developed to save renters a trip to the bank and the leasing office, making it possible to pay rent wherever they are – and with 600k app downloads and counting, we’re on to something.
And ultimately, digital payments don’t just make the lives of millennials easier – they save everyone time and frustration. Our property managers may not spend their extra time Ubering food deliveries to their Game of Thrones marathon, but they will be relieved when they’re not rushing to process hundreds of our rent checks before our accounts are emptied out by our student loan payments.
Join the Revolution
With millennials now making up the majority of the population, we have moved well past the technology/commerce crossroads. It is now more important than ever that companies, in all industries, make the move to mobile and integrate frictionless payments into their customer experience.