Millennials Prefer Checks for P2P Payments

Dec 29, 2015

Don’t believe the hype. Millennials still prefer to use cash and checks over online or mobile payment methods. Despite the buzz about Millennials abandoning traditional forms of payment, a new report by Aite Group shows 58% of Millennials (ages 26 to 34) and 53% of Millennials (18-25) wrote checks last year to pay another person. This refutes the idea that this group prefers to us mobile and internet methods for person-to-person (P2P) payments. The report was based on a survey of 1,700 participants.

Still online and mobile P2P alternatives are gaining ground. Paypal is the clear leader in online P2P payment providers. 49% of participants said they used the service last year. Paypal is also first among electronic methods, with 5.7 P2P transactions per household. As far as mobile-payment methods go, mobile banking leads the way with 1.4 transactions per household. In second place is Venmo (a service acquired by PayPal in 2013) at 0.6. Bringing up the rear is Square, which makes up for 0.3 P2P transactions per household.

Paypal’s complete dominance in P2P payments probably has a lot to do with its sheer tenure; it has been around since 1998 after all. So what accounts for the other rises in electronic and mobile payment methods? As far as the boost in mobile payments goes, the outrageous integration of smartphones into the daily lives of consumers has made mobile P2P almost a necessity. Over 79% of Millennials and Gen Xers (ages 35 to 50) own a smart phone, and about 60% have a tablet. These numbers are predicted to continue to grow. And as generations are born and live with smart phones and tablets, they are expected to do more shopping and payment processes on these devices.

Retailers must be able to process more advanced forms of payment like electronic checks, P2P payments, and mobile payments to maintain a healthy and profitable relationship with customers.  This is especially important if you are a high risk merchant. EMB provides a payment gateway for high risk merchants that enable them to process a variety of payments like debit/credit cards, checks, electronic check processing and more.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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