New research shows millennials embrace digital wallets while prioritising security across retail, travel, and entertainment sectors
Millennials are increasingly turning to mobile wallets, especially those equipped with multi-currency features for their international transactions, while simultaneously prioritising security above all other factors, according to a new study by PXP, a leading omnichannel tech platform.
The study reveals that 64% of millennials—those born between 1981 and 1996 value digital wallets, especially for international travel, and 40% consider security their top priority when choosing payment methods. This generation is balancing traditional payment solutions with emerging technologies as they shape an increasingly complex payment ecosystem.
However, mobile wallets are becoming increasingly popular, with 20% of younger millennials using mobile wallets like Apple Pay on a daily basis, although many millennials still rely on more traditional payment methods for everyday spending. The research reveals variations in payment preferences based on context, ranging from everyday essentials to high-value purchases. For example, debit cards remain the most popular choice for everyday shopping, with 40% of millennials using them as their primary payment method in grocery stores, while 24% opt for credit cards for high-ticket online purchases.
Cash remains in use for certain transactions, with 20% of millennials preferring to pay with cash when dining out, often for splitting bills in group settings. Online shopping continues to dominate, with 80% of millennials conducting the majority of their shopping online. When it comes to travel and accommodation, 38% of millennials use debit cards for hotel bookings, while 26% prefer credit cards to access rewards, insurance, or cashback benefits.
“Millennials want payment options that match their mobile-first lifestyles without compromising on security,” says Kamran Hedjri, group CEO for PXP. “Our research shows they expect payment systems that deliver both innovation and trust, regardless of whether they’re shopping at home or abroad.”
PXP’s study, conducted in conjunction with the leading polling firm Censuswide, surveyed over 2,000 consumers in the UK and the US to discover their payment preferences, priorities, and frustrations.
Other insights on millennials from the study reveal:
The findings come shortly after PXP introduced PXP Unity, a tech-first platform built to support businesses in adapting to changing consumer demands. With millennials expecting security, flexibility and a seamless payment experience across channels, PXP Unity gives merchants greater control over their transaction data, smart routing capabilities and access to a growing catalogue of services, all through a single integration.
“Meeting millennial payment expectations isn’t optional—it’s essential for business growth,” adds Hedjri. “PXP Unity empowers merchants to deliver the flexible, secure payment options this influential generation demands, while streamlining operations behind the scenes.”
The research identifies specific strategies businesses can implement to attract millennial customers across various sectors. From mobile wallet incentives for retailers to bill-splitting features for restaurants, loyalty-integrated payment systems for fashion brands to BNPL options for ticketing platforms – each industry has unique opportunities to enhance the millennial payment journey. Businesses that implement these tailored approaches can expect higher engagement, increased loyalty, and improved conversion rates from this digitally savvy generation.
Read the complete report ‘Millennials and the Future of Payments’ and discover detailed strategies for enhancing your payment ecosystem based on your specific industry.
PXP is a tech platform that makes commerce simpler, better, and more connected. With just one connection to PXP, merchants can unlock a world of commerce across online, mobile, and point-of-sale channels. Powered by a suite of financial services, multiple acquiring connections – including an in-house acquiring licence – and diverse alternative payment methods, PXP processes over €30 billion annually through our unified gateway. Connect once to our global commerce ecosystem to supercharge your growth by unifying payments, streamlining operations, and getting access endless opportunities. Learn more about the PXP family of companies at: http://pxp.io/.
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