Nearly one five Australians are interested in using  a microchip in their hands to make payments easier, according to research from global fintech FIS, that examines attitudes to payments across generations and regions.

The FIS Generation Pay report found biometric authentication is key to future payments in Australia. The report is based on a survey conducted by FIS payment arm Worldpay.

Biometric technology is set to rise exponentially, with these payment methods becoming more popular amongst younger generations. Globally, Gen Z consumers are the most interested in these new payment forms, with 69 per cent already using or interested in using biometric authentication to authorise a payment.

The report also reveals that almost a quarter (23 per cent) of Australians are already using or are interested in making voice payments. Convenience is key when it comes to consumers embracing new ways to pay, with 40 per cent of Aussies keen to have voice in-car payment solutions to make payments while driving, and this rises to almost 60 per cent for Gen Z and Gen Y consumers. Mobile wallets are also becoming ubiquitous, with over 70 per cent of Gen Z respondents either using or interested this payment method will soon reach a tipping point.

Buy Now, Pay Later (BNPL) is also shown to be highly favorable with younger generations. 40 per cent of Aussie Millennials said they are likely to purchase something over $1500 with a BNPL service. Across the globe, for the three youngest generations, between half (51 per cent) and two thirds (67 per cent) have purchased something off social media. The research also reveals that younger generations are more comfortable with taking financial risks and taking on debt that they can pay overtime, while they are also more open to risker investments.

Phil Pomford, General Manager for Global eCommerce, APAC, Worldpay Merchant Solutions, FIS, said “Australians are usually on the front foot when it comes to adopting emerging payment trends and we have already seen a huge uptake in biometric payment trends like fingerprint sensors and facial recognition technology. This is really just the beginning and we anticipate that further innovations in this area including, voice-activated commerce, will continue to become more widely adopted by the mainstream public.”

“Convenience is king to today’s consumer, particularly the younger generations, who are more likely to adopt new and emerging technologies trends if it means they are rewarded with some level of convenience in return. For retailers and merchants to thrive in the future, they need to consider broadening they payment offering in order to appeal to tech-savvy, digitally-driven consumers.”

Market comparisons on sample key findings

Australia

17 per cent – are interested in putting microchip in hand: 25 per cent (genZ) 24 per cent (genY) 16 per cent(genX) 7 per cent(baby boomers) 8 per cent(beyond boomers)

30 per cent – are interested in in-car payment integration: 42 per cent (genZ) 43 per cent(genY) 29 per cent(genX) 10 per cent(baby boomers) 22 per cent(beyond boomers)

35 per cent – likely/highly likely to use BNPL product to make purchase under $375

31 per cent – likely/highly likely to use BNPL product to make purchase between $375-$1500

27 per cent – likely/highly likely to use BNPL product to make purchase over $1500

China

49 per cent – are interested in putting microchip in hand: 41 per cent (genZ) 49 per cent(genY) 59 per cent(genX) 47 per cent(baby boomers) 17 per cent(beyond boomers)

53 per cent – are interested in in-car payment integration: 52 per cent (genZ) 60 per cent(genY) 47 per cent(genX) 53 per cent(baby boomers) 62 per cent(beyond boomers)

82 per cent – likely/highly likely to use BNPL product to make purchase under 1500 Yuan

73 per cent – likely/highly likely to use BNPL product to make purchase between 1500-7000 Yuan

55 per cent – likely/highly likely to use BNPL product to make purchase over 7000 Yuan

USA

15 per cent – are interested in putting microchip in hand: 22 per cent (genZ) 18 per cent(genY) 21 per cent(genX) 5 per cent(baby boomers) 5 per cent(beyond boomers)

31 per cent – are interested in in-car payment integration: 43 per cent (genZ) 40 per cent(genY) 29 per cent(genX) 21 per cent(baby boomers) 12 per cent(beyond boomers)

44 per cent – likely/highly likely to use BNPL product to make purchase under $250

43 per cent – likely/highly likely to use BNPL product to make purchase between $250-$1000

31 per cent – likely/highly likely to use BNPL product to make purchase over $1000

UK

15 per cent – are interested in putting microchip in hand: 22 per cent (genZ) 17 per cent(genY) 11 per cent(genX) 12 per cent(baby boomers) 6 per cent(beyond boomers)

31 per cent – are interested in in-car payment integration: 46 per cent (genZ) 38 per cent(genY) 27 per cent(genX) 22 per cent(baby boomers) 10 per cent(beyond boomers)

30 per cent – likely/highly likely to use BNPL product to make purchase under 250GBP

32 per cent – likely/highly likely to use BNPL product to make purchase between 250-1000GBP

35 per cent – likely/highly likely to use BNPL product to make purchase over 1000GBP

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