Many Americans are still waiting for their new chip-enabled credit cards. This comes even after the October 1st deadline for retailers to install new smart chip credit card readers. But having the EMV chip cards is of no concern to the younger demographic of cardholders.
Since customers will eventually no longer pay with a swipe of a card, the “process can take as long as 4, 5 seconds so it’s really slowing the transaction down,” said Chris Britt, the co-founder and CEO of Chime, a mobile bank account and rewards app. Britt maintains the slowdown will turnoff millennials from using cards as a form of payment altogether.
“We actually think that this is going to result in changing the way people pay and probably shift it even faster to mobile payments,” he said.
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Mobile payment services like ApplePay (AAPL) stand to be big winners in the way millennials want to spend. “You simply wave your phone over the terminal and the payment is made,” he said.
His views coincide with Chime’s recent study, which found a whopping 88% of millennials would prefer to never deal with a traditional brick-and-mortar bank. The study also found 67% of millennials use a debit card over a credit card as their primary method of payment.
The shift to debit cards from credit cards for the younger generation is about both control and fear. “They’ve seen 2008 and the crisis that happened then. They also have a tremendous amount of debt…so they’re preferring the safer approach,” said Britt.
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