For Gen Y, it is a future without cash

Thriving on a diet of online shopping, mobile banking and virtual games, a section of the population called Millennials, believe in a future where new technology will allow them to almost totally dispense with cash.

According to Visa’s Connecting with the Millennials study, which features interviews with over 5,500 young people across Asia, Russia and the UAE, eight in 10 Millennials believe that they will one day be able to do all their shopping and bill payments online. Some 73 per cent believe this will be possible with a mobile phone.

Uttam Nayak, Group Country Manager, India and South Asia, Visa, said, “Millennials play a significant role in boosting electronic payments in India. They have an active digital lifestyle and are embracing new payment technologies. At Visa, we see mobile and online payments as a game changer and will drive growth towards a cashless and a more efficient environment''.

The study highlights several interesting trends. Indian millennials are independent with strong family values, hence, parents are seen as the main source of influence or advice when it comes to managing finance.

A high proportion of Indian millenials have an active digital life today and extensively use their personal computer or laptop for internet banking, online shopping, and bill payments.

Online shopping is becoming increasingly popular among young Indian consumers and they spend about 16 per cent of their monthly disposable income online. Among those who purchase online, four in 10 make online purchases at least monthly, indicating a healthy appetite for buying online.

Heavy cash usage, key barrier

However, 24 per cent of the millenials prefer cash on delivery as the most preferred payment method for online purchases, followed by debit card which is preferred by 21 per cent, the report added.

Despite the steady growth of electronic payments in India, heavy usage of cash is still seen as a key barrier. According to the survey, millennials still pay for 56 per cent of the total expenses by cash. This is majorly for payments of low value products. Issues like low acceptance, uncomfortable for small purchases, apprehensions around mischarges and safety are some of the barriers, notes the report.