Changing Consumer Credit Behavior Benefits Mobile Payments

Mercator Advisory Group has published some interesting findings in a new research report highlighting changing consumer behaviors with regard to credit cards.

As it turns out, younger shoppers aren’t into plastic quite like their elders were and still are.

The report titled “Consumers and Credit 2012: Come Back, Young Cardholders” indicates that only 59 percent of young adults in this age group now have credit cards. 70 percent of seniors, meanwhile, are packing plastic.

All told, debit is bypassing credit with younger shoppers. 36 percent of young adults use debit cards as opposed to just 12 percent of seniors.

“The anticredit card sentiment appears to be waning,” said Karen Augustine, manager of CustomerMonitor Survey Series at Mercator Advisory Group. “But issuers need to address the needs of the young adults in order to stimulate greater credit card volume.”

According to eCommerce analyst Sinclair Briar with the XK Mobile Solutions, today’s young shoppers will drive mobile payment and NFC adoption through the roof in coming years.

“Make no mistake about it,” Briar says, “today’s consumers do not have an aversion to spending. They are the most debt heavy young society in human history. It’s just their payment preferences which are shifting. NFC tests very positively with focus group of shoppers under the age of 40. Mobile payment options are resonating with this group solidly. Diminishing credit card access is only going to benefit mobile momentum in the long run.”