Cape Town - Using cash for purchases will soon be a thing of the past, according to a recent 11-country Connecting with the Millennials survey conducted by Visa.
Millennials, typically born between 1982 and 1995, make up 25% of the world’s population and grew up with the internet making them tech-savvy.
South Africans, along with Koreans, are the top cards over cash adopters in the world with 61% of Millennials in both countries preferring to use their cards instead of cash.
According to the survey, which features interviews with over 5 500 people aged between 18 and 28, 68% of Millennials said a cashless society was on the way.
And close to 80% said they expected that soon it would be possible to conduct all their shopping and pay all their bills online.
Seventy-three percent believe this will be possible with a cellphone.
“The ubiquity of the internet and mobile technology are helping to make electronic payment an intrinsic part of a Millennial’s purchasing behaviour,” said Paul Jung, head of Visa’s eCommerce division for Asia Pacific, Central Europe, Middle East and Africa. Gadget dependence
South Africa’s Millennials see gadgets as an important part of their lives: 89% said it would be "impossible" to live without a computer. Eighty percent said they could not live without smartphones.
“The research also found that while South African Millennials are ardent users of technology, they are also security conscious. Ninety percent said card security is an important aspect to consider when venturing online,” said Jung. Online habits
Eight out of 10 Millennials are online shoppers, half of whom shop online monthly.
South African Millennials use the internet for various activities, including emailing, searching for information and internet banking. Groceries, transport and rent/mortgage are the top three areas where South Africa’s Millennials funnel their online cash payments.
The propensity to save among South African Millennials is lower than average, with only 68% setting aside a part of their income each month for saving and a lower proportion (21%) of their total disposable income.
Shopping is the main activity they save for, followed by retirement and a home purchase.
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