Payment and Liquidity Linked For Mellinnials

Consumers under age 35, those that open two-thirds of all checking accounts, associate making a purchase or payment with how they are going to finance the transaction.  New research documents this trend.  Chain Store Age reports 59% of consumers under age 35 say a purchase decision is impacted directly by the their available choices to finance the specific transaction.  They point to retailer financing as a key option, and today many specific payment methods offer related transaction financing.

Perhaps more importantly, the study shows that most of these consumers need alternative approaches to financing.  The segment is delaying home-buying and other credit-building activities, and as a result have thin credit files or low credit scores.  “Up to 50% will be declined using historical underwriting methods,” Suneet Paul in the study.  Meanwhile, Silicon Valley is booming in offering alternative financing to these web and digital savvy consumers.

In the new payments environment, more consumers are looking at a payment device and liquidity options as two sides of the same coin.  Specifically, they may choose to use PayPal to make a purchase specifically to finance it with BillMeLater, now PayPal credit.  PaySound^® provides financial institutions the payments accounts and related liquidity services to compete in the new environment.