Young adults prefer debit to credit for online payments

Online retailers need to implement a variety of payment options to ensure they are catering for younger consumers.

by Helen Leggatt

JupiterResearch’s new report, “Payment Preferences Online: Managing the Generation Gap Between Mature and Young Adults”, has found that consumers under the age of 35 have different payment preferences to older age groups. Debit cards are the preferred payment method for almost half, 48 percent, of consumers aged 25 to 34, says the report, compared to just 39 percent of all online consumers.

The report’s lead analyst, Edward Kountz, said that because baby boomers and young adults had grown up with technology they were more comfortable using credit card alternatives such as PayPal, stored value cards or debit cards. According to JupiterResearch's report, 34 percent of consumers aged 18 to 24 prefer PayPal or similar payment methods, compared to 27 percent of all online consumers. Online retailers would do well to pay attention to you the payment habits of young purchasers, and tailor payment options to satisfy these groups.

"As younger adults expand in proportion to the workforce, their earnings and overall capacity to purchase will also increase. This will solidify the most durable of their different payment preferences, "said Kountz.

Tags: baby boomers, credit cards, debit cards, payment methods, PayPal, young adults