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Visa Customer Insights - Millennials 2013
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    Visa Customer Insights - Millennials 2013 Visa Customer Insights - Millennials 2013 Presentation Transcript

    • Visa Customer Insights – Millennials Michael Marx Senior Business Leader Global Research, Insights and Analytics Visa Inc.
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Forward-Looking Statements and Disclaimer This presentation may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms “objective,” “goal,” “strategy,” “opportunities,” “continue," “can,” "will" and other similar references to the future. Examples of such forward- looking statements may include, but are not limited to, statements we make about our corporate strategy and product goals, plans and objectives. By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are neither statements of historical fact nor guarantees of future performance and (iii) are subject to risks, uncertainties, assumptions and changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements because of a variety of factors, including the following: macroeconomic and industry factors such as currency exchange rates, global economic, political, health and other conditions, competitive pressure on customer pricing and in the payments industry generally, material changes in our customers' performance compared to our estimates; systemic developments such as disruption of our transaction processing systems or the inability to process transactions efficiently, account data breaches involving card data stored by us or third parties, increased fraudulent and other illegal activity involving our cards; and the other factors discussed under the heading "Risk Factors” in our most recent Annual Report on Form 10-K and our most recent Quarterly Reports on Form 10-Q. You should not place undue reliance on such statements. Unless required to do so by law, we do not intend to update or revise any forward-looking statement, because of new information or future developments or otherwise. Studies, survey results, research, recommendations, and opportunity assessments are provided for informational purposes only and should not be relied upon for marketing, legal, regulatory or other advice. Recommendations and opportunities should be independently evaluated in light of your specific business needs and any applicable laws and regulations. Visa is not responsible for your use of any studies, survey results, research, recommendations, opportunity assessments, or other information, including errors of any kind, or any assumptions or conclusions you might draw from their use. Except where statistically significant differences are specifically noted, survey results should be considered directional only.
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Agenda • U.S. Millennial Demographic and Lifestyle Overview • Trends Impacting Millennial Commerce and Payments • Millennial Finances and Payment Preference Drivers • Electronic Payment Opportunities and Messaging Recommendations to Achieve Them
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Population Size of Millennials Source: U.N. Department of Economic and Social Affairs (Obtained from C&R Research, Millennial Parents Webinar, June 2012) There are a LOT of them! Male Age Female 2011 Population Millennials (16–34) 79 Million Boomers (47–65) 76 Million
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Although the Number of Young Adults Increased Over the Last Decade, the Segment Population will Remain Stable Over the Next 20 Years 25.5 27.1 29.3 30.5 30.0 29.3 31.0 9.6% 9.6% 9.9% 9.9% 9.3% 8.7% 8.9% 0% 3% 6% 9% 12% 0 10 20 30 40 1995 2000 2005 2010(e)2015(e)2020(e)2025(e) Projected Population Growth of Young Adults (18–24), 1995–2025 0 1 2 3 4 5 1960 1970 1980 1990 2000 2010 Annual Registered Births in the U.S. 1960–2009 Annual Births (millions) Source: U.S. Census Bureau, Statistical Abstract of the United States, 2011and 2012 The expected decline in young adults can be attributed to the drop in annual birth rates after the Baby Boomers peaked and Generation X reached reproductive age 2012 Total U.S. Population 317,000,000 Number of People (millions) Percent of Population The young adult segment is expected to decline as a percentage of the total population
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Sources: The Futures Company (Millennials in Crisis) 2011; C&R Research, Millennial Parents Webinar, June 2012 Multicultural Greater Diversity New Gender Balance Multi-generational Households Scarce Resources Societal Conditions as Millennials Come of Age are Very Different from Prior Generations Women dominance in college (57 percent of enrollments) as well as the workplace Climate change, scarcities of water, fish, timber, precious metals and habitat • 2010 Census estimates suggest that multi- racial, multi-ethnic population has grown 35 percent since 2000 • 41 percent of Millennials agree that technology “is essential” for their social lives (Yankelovich, 2011) • 71 percent agree they prefer experiential spending over acquiring things (Futures Company, 2011) Ethnicity by Age Total Population Asian African American Hispanic >1 10 20 30 40 50 60
    • Lifestyle Profile
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials 61% 49% 58% 66% Part of Millennial Identity is a Distinct Image of Themselves and Their Generation Millennial (18–29) Generation X (30–45) Boomer (46–64) Silent (65+) Is Your Generation Unique? (Percent Answering Yes) What Makes Your Generation Unique? Technology Use Technology Use Work Ethic WWII, Depression Music/Pop Culture Work Ethic Respectful Smarter Liberal/Tolerant Conservative/Traditional Values/Morals Honest Smarter Smarter Baby Boomers Work Ethic Clothes Respectful Smarter Values/Morals Source: Pew Research, 2010 12% 11% 7% 6% 5% 17% 14% 8% 6% 5% 14% 13% 12% 10% 10% 24% 11% 7% 6% 5%
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Millennials Have Been Raised and Educated in a Team Dynamic Key decisions discussed with parents as well as circle of friends Team dynamic – A key generational characteristic of Millennials but…team does not necessarily mean “face-to-face” Raised with group teaching, extracurricular team activities, structured pastimes, highly scheduled days Commitment to community if it doesn’t interfere with individual pursuits Source: The Futures Company 2011 Millennials in Crisis, March 29, 2011 Group Activities Group Learning Structured Lives Parental Involvement Individuality and Community Importance of Group Resources (and the Divide in Access)
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Source: “Invention. Independence. Investment.” OMD 2011 When It Comes to Learning About New Products, Young Adults Prefer to Take Charge by Searching the Internet Overall Usefulness of Each Source When Researching Products/Services 64% 58% 57% 56% 50% 37% 35% 33% 31% 27% Top Sources Used for Each Respective Type of Research Comparing Prices Learning about Brands Looking for Sales/Promos Search 46% Search 45% Search 40% In-store Displays 31% TV 42% In-store Displays 38% Online Reviews 27% Friends 41% TV 38% Newspapers 26% Family 40% Digital Coupons 35% Family 25% Magazines 31% Newspapers 34% Reading Product Reviews Reading Product Descriptions Online Reviews 44% Search 42% Search 40% Online Reviews 33% Online Forums/Blogs 30% Magazines 26% Offline Reviews 26% Web (in-general) 24% Web (in-general) 25% In-store Displays 23% Internet Search Friends Family Online Reviews Television Newspapers Magazines Mail Social Networks Radio
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials …makes life harder …isolates people …makes people waste too much time Source: Pew Research, 2010 and 2012 Young Adults Have a Positive View of the Role Technology Plays in Their Lives New Technology… …makes life easier …brings people closer …allows more efficient use of time 74% 54% 56% 69% 52% 52% 60% 48% 54% 50% 44% 41% 18% 35% 33% 21% 36% 34% 30% 42% 35%36% 44% 41% 18–29 30–45 46–64 65+ PositiveNegative 54% 77% 89% 94% 65+ 50–64 30–49 18–29 Internet Use
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Source: Javelin Strategy and Research “How to Engage and Service the New Mobile Generation”, 2011; Generation Y also known as Millenials Young Adults Value Their Mobile Devices Greatly and Expect Them to Continue to Grow in Importance 46% 35% 33% 30% 29% 27% 26% 23% 36% 22% 22% 24% 21% 19% 20% 18% Generation Y All Consumers Make price comparisons when shopping Organize tracking gift cards, loyalty and reward points Track your finances on a daily basis Purchase tickets to events Use as a membership card (for museums, gym, etc.) Use your mobile phone as a ticket for mass transit Make purchases at the point of sale Use your mobile phone as a key to enter your house Ways Consumers Want to Use Their Mobile Phones 4% 9% 22% 30% 27% 4% 10% 22% 25% 33% Generation Y All Consumers Blackberry iPhone Samsung Other Smartphone Preferences by Brand Android
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Source: istrategylabs.com, January 4, 2011; Pew Research, 2010 and 2012 Young Adults Lead the Way on the Internet… 12.3 14.3 17.2 26.1 45.4 0 20 40 60 80 100 120 140 160 MillionsofUsers 55+ 35 to 54 25 to 34 18 to 24 13 to 17 2007 2008 2009 2010 2011 Young Adult Facebook Statistics % of Total Users 62% 54% 41% 25% 31% 83% 77% 52% 32% Milliennial (18-29) Gen X (30-49) Boomer (50-64) Silent (65+) Percent of Internet Users in Each Group Who Use Twitter 18 to 29 27% 30 to 49 16% 50 to 64 10% 65+ 2% 11% 19% 29% 21% 26% 19% 26% 26% 25% 24% 20% 25% 38% 39% 25% 38% 46–64 30–45 18–29 All Users Several Times a Day Once a Day Every Few Days Once a Week or Less Percent of Population Who Use Social Networking Sites Facebook User Population Frequency of Use of Social Networking Sites
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials 79% 74% 2000 2010 Living Dual Lives Well Be relevant in both consumer lives — physical and virtual commerce experience Millennials and Driving Source: Federal Highway Administration 10,300 7,900 2000 2010 Average Miles Driven Percent with Drivers License Maximizing actual and virtual living
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Generational Get Along Segment Conflict 29% 34% 2012 2011Young People and Old People 58% 66% 2012 2011Rich People and Poor People Percent of Adults Living in Multi-generational Households 20% 17% 15% 22% 1950 1970 1990 2010 Source: Pew Research, Center 2012 Buying influencers cut across generations Reach all brand influencers for intergenerational opportunities
    • Financial Overview
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials A Degree in Debt Source: Institute for College Access and Success Report, 2011 On average, college graduates recoup their college investment after eleven years of work Average Student Debt at Graduation $27,000 (e) $25,250 $24,000 2009 2010 2011 (US$)
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Assessment of Financial Situation Which of the following statements best describes your situation? Source: Allstate/National Journal Hearland Monitor Survey, 2010 The debt burden on young adults will grow as they shift toward greater independence in the next few years, increasing loan/debt consolidation Young Adults Have a Variety of Debt and Few Feel Entirely Comfortable with Their Financial Situation Types of Debt Among Young Adults Which of the following types of debt are you currently carrying? 32% 28% 21% 13% 7% 34% 7% Credit card Student loan Mortgage Other None of the above Don’t know/refused Vehicle 40% 32% 16% 12% I can live comfortably and save an adequate amount I find it hard to make ends meet every month I can get by every month, but I find it difficult to save and invest Don’t know/refused
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Social Listening Provides Insights of 18–24 Age Source: Sysomos social media listening tool; sample quotes through August 14, 2012 Sample quotes regarding finances among 18–24 year olds – Seem to talk frequently about paying off debt (i.e., college loans) and figuring out how to adjust to healthy spending habits Checked calender: crap, my credit card was due SUNDAY. And it was Monday. Oh, fudge. I emotionally abused myself for the late fee that I'll probably get slapped with (although right now it says $0 late fee on my account - so maybe I got a 12 hour grace period?)... but then put on my big girl panties and paid the bill. Considered paying the whole card instead of the statement balance... -inmyblondelife.blogspot.com; age 21 I recently let the cat out of the bag to my Mom about how after buying a house I got myself into a little credit card debt and how long it took me to get back out. My Mom sounded surprised when she said, 'you never told me about that' to which I responded, 'that's because it was my mistake to fix and I knew if I told you, you'd want to help'. It has always been important to me to be independent. To earn what I get and to work for what I want. -becca-christensen.blogspot.com; age 23 For the past 7 months, I have been rigorously pushing myself to get my debt paid off. I have pretty well so far, I think. I got my car paid off, my furniture, one of my credit cards, and, most recently, a loan I took out from School's first. I still have a long way to go, however, as I have one more credit card (over 2,000 dollars) and upwards of 80,000 remaining in other student loans. -isignforhim.blogspot.com; age 19 Here we are, 23 and 21 years old, with a boatload of debt that I brought into this marriage. In my defense, I warned my husband about it, a billion times, before he went ahead and married me. But he's crazy, what can I say? The first 3 years, I managed to develop a bill paying system. It wasn't exactly a budget system, it was just a paying system of ensuring everything was paid, on time, every month. Our income wasn't horrible... but we were horrible spenders on the side. My husband is notorious for using his ATM card as if it's a credit card, so we would have insane debit purchases every month. -pandaundercover.blogspot.com; age 21
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Social Listening Provides Insights of 25–34 Age So for the last little while I have been making clandestine changes behind my bank's back: switching my automatic bills to my new bank, my better bank that makes me happier and fulfills me as a human being. I changed my direct deposit, too, and waited for the world to end. Nothing happened. So I continued. My mortgage is now taken from my new bank. I've made debit card purchases with my new card. I've ordered new checks, added Mike to the account, even memorized my new account number (which was one of the biggest mental hurdles keeping me from leaving Wells Fargo). I've kept all of this hidden from my bank, but soon it will be time to let the cat out of the bag and sever ties forever -ckpblog.blogspot.com; age 28 So for anything we don't pay online I'm trying the cash allowance approach to cautious spending. Strictly cash for: gas groceries my physical therapy appointments pedicures (yes pedicures are worked into my savings plan and I realize how ridiculous that sounds) gifts entertainment/eating out It has been extremely helpful in making me more aware of how much I'm spending and deciding how necessary it is to make certain purchases. I also love that I don't have to record so many debit card purchases to keep up with balancing our accounts. -jessicaisweird.blogspot.com; age 31 Zoe went to sleep straight away as it was past her bedtime, and I settled in with my credit card statements, checkbook, and budget spreadsheet. (Fun!) It's reassuring to see our savings growing again, since we've been digging in deep to cover new home expenses. -latentimages.blogspot.com; age 33 A few weeks ago, one of my friends posted on Facebook that she and her husband refinanced their home mortgage with a program designed for people who were current on their mortgage and it did not require an appraisal. She said that the new mortgage rates allowed her and her husband to save thousands each year! So, my husband and I started thinking... maybe we should try to refinance as well...She told us we needed to pay off the bills (which we knew) but also to each get a credit card (that we did not know). It seems funny to get into more debt when you are trying to get out of debt! -homeschoolparent.blogspot.com; age 32 Source: Sysomos social media listening tool; sample quotes through August 14, 2012 Sample quotes regarding finances among 25–34 year olds – There are twice as many sample blog quotes for the 25–34 age group than the younger. This group starts talking about mortgages, establishing banking/account history, and coming out of a period of early 20-something’s debt.
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials 0 5 10 15 20 25 30 35 40 45 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+ Spend Transactions Age Total Monthly Spend and Transactions Base – Own Payment Card Note: Total monthly spend and transactions exclude rent, mortgage, debt payments, and cash transactions below US$5 Source: Visa Payment Panel Study, 3Q11-2Q12 Total Monthly Spend (US$) Total Monthly Transactions Monthly spend and transactions increase during 20s and 30s, then peak Important to Acquire Relationship Prior to Peak Spending Years
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Millennials Have Been Shifting Cash and Check to Plastic Since 1990s Debit and credit overtake cash for the first time between 2004–2006 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 41% Consumer Transactions in the U.S. 1996–2011 for Age 18–29 36% 11% 6% 6% 39% 29% 11% 18% 4% Check Credit Cash Debit Other Note: Monthly Transactions exclude rent, mortgage, debt payments, and cash transactions below US$5 Base: Own Payment Card and Age 18-29 Source: Visa Payment Panel Study, 1996-2011 Year
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials 5% 6% 5% 4% 12% 8% 12% 12% 20% 37% 30% 18% 3% 6% 4% 3% 26% 20% 29% 26% 22% 8% 10% 25% 12% 15% 10% 12% Total 18-24 25-34 35+ Cash Checks Rewards Credit Non-Rewards Credit Debit Cards ACH/EFT Other Share of Spend by Age Total Monthly Spending (US$) $2,012 $934 $1,610 $2,285 10% 4% 3% 13% 34% 39% 6% 5% 23% 18% 8% 8% 16% 13% 18-24 Students 18-24 Non Students Base: Consumers age 18+ who own at least one payment card of any kind Source: Visa Payment Panel Study, 2Q11-1Q12 Total Monthly Spending
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Younger Cardholders are More Likely to Use Their Cards for Ecommerce 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+ 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+ Debit Ecommerce Active Base – Debit Cardholders Credit Ecommerce Active Base – Credit Cardholders 34% 2% 25% 3% Age Age Source: Visa Payment Panel Study, 3Q11-2Q12 Debit and credit enable young adults to shop online
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Debit Preference for Purchases Highest Among Young Adults Source: Visa U.S. Payments Tracker, 2011 Age 0% 15% 30% 45% 60% 18–24 25–34 35–54 55–64 65+ Prefer Debit Prefer Credit Prefer Cash Prefer Check Best Overall Payment Method for Purchases Base – Total Consumers
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials 5% 7% 8% 8% 29% 32% 6% 6% 9% 16% 22% 34% Employer requested direct deposit Access to larger funds for emergency Bank gave me without requesting Avoid carrying cash Access to larger funds in account Better control over my money Top Reasons for Debit Acquisition Base – Primary Debit Cardholders 8% 30% 4% 6% 8% 30% 5% 13% 13% 14% 19% 26% Card benefits Earn rewards Access to larger funds for emergency Build credit Sufficient credit line Better control over my money Top Reasons for Credit Acquisition Base – Primary Credit Cardholders Source: Visa Global Payments Tracker, 2012 Millennials Acquire Cards to Give Them Better Control over Their Money • Debit acquisition also driven by access to funds in account; age 18–24 more likely to acquire a card to avoid carrying cash • Credit acquisition also driven by sufficient credit line and for building credit among age 18–24; age 25–34 more likely to acquire a card to earn rewards 18-24 25-34 Age 18-24 25-34 Age
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Cash Back is the Preferred Rewards Program for Young Adults 2% 3% 8% 21% 65% Gas Hotel Stays Airline Miles Points Cash Back Credit Rewards Preference Base – Primary Credit Cardholders Age 18–34 2% 3% 9% 14% 69% Hotel Stays Airline Miles Gas Points Cash Back Debit Rewards Preference Base – Primary Debit Cardholders Age 18–34 Source: Visa Global Payments Tracker, 2012
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials 18-24 years 25-34 years I don't have a credit history/I do have a bad credit history I don't think I would qualify for one I have a debit card and that is enough It is not a safe payment method Afraid of mischarges/fraud/card cloning It’s slow to use compared with other payment methods Additional fees charged for maintaining/using the card/annual fees I dislike paying interest I dislike being in debt It is not accepted everywhere Difficult to use I prefer cash Fear of exceeding my expenses/afraid of losing control of expenses I don't need a credit card Others 30% 20% 41% 18% 16% 19% 46% 48% 56% 12% 5% 50% 0% 3% 2% 31% 22% 30% 7% 10% 2% 21% 38% 43% 5% 3% 26% 0% 0% 6% Base: Total Non-Credit cardholders Source: Visa Global Payments Tracker, 2011 Credit Card Barriers for Millennials
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials 10 20 30 40 50 60 70 30 40 50 60 70 CONTINUE PROMOTINGMAINTAIN IMPROVEDEPRIORITIZE 75% 10% 70%30% AssociationwithDebit (top2boxagreementon10ptscale) (Base–DebitCardholdersAge18–24) Source: Visa Global Payments Tracker, 2012 Association with Ideal Payment Method (top 2 box agreement on 10pt scale) (Base – Debit Cardholders Age 18–24) Safe to carry in wallet Fast Widely accepted For emergencies Gives rewards Convenient No additional fees For international travel Keep track of spending Lets me pay in installments Gives better price Provides protection against fraud Modern way to pay Debit Positioning Opportunities for Young Adults Age 18–24 LOW appeal and HIGH association LOW appeal and LOW association HIGH appeal and HIGH association HIGH appeal and LOW association
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Source: Visa Global Payments Tracker, 2012 Debit Positioning Opportunities for Young Adults Age 25–34 10 20 30 40 50 60 30 40 50 60 70 CONTINUE PROMOTINGMAINTAIN IMPROVEDEPRIORITIZE 60% 10% 70%30% Association with Ideal Payment Method (top 2 box agreement on 10pt scale) (Base – Total Debit Cardholders Age 25–34) Safe to carry in wallet Fast Widely accepted For emergencies Gives rewards Convenient No additional fees For international travel Keep track of spending Lets me pay in installments Gives better price Provides protection against fraud Modern way to pay LOW appeal and LOW association HIGH appeal and HIGH association HIGH appeal and LOW association AssociationwithDebit (top2boxagreementon10ptscale) (Base–DebitCardholdersAge18–24) LOW appeal and HIGH association
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Source: Visa Global Payments Tracker, 2012 Credit Positioning Opportunities for Young Adults Age 18–24 10 20 30 40 50 60 70 30 40 50 60 70 CONTINUE PROMOTINGMAINTAIN IMPROVEDEPRIORITIZE 75% 10% 75%30% Association with Ideal Payment Method (top 2 box agreement on 10pt scale) (Base – Credit Cardholders Age 18–24) Safe to carry in wallet Fast Widely accepted For emergencies Gives rewards Convenient No additional fees For international travel Keep track of spending Lets me pay in installments Gives better price Provides protection against fraud Modern way to pay LOW appeal and LOW association HIGH appeal and HIGH association HIGH appeal and LOW association AssociationwithDebit (top2boxagreementon10ptscale) (Base–DebitCardholdersAge18–24) LOW appeal and HIGH association
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Source: Visa Global Payments Tracker, 2012 Credit Positioning Opportunities for Young Adults Age 25–34 20 40 60 80 30 40 50 60 70 CONTINUE PROMOTINGMAINTAIN IMPROVEDEPRIORITIZE 85% 20% 70%30% Association with Ideal Payment Method (top 2 box agreement on 10pt scale) (Base – Credit Cardholders Age 25–34) Safe to carry in wallet Fast Widely accepted For emergencies Gives rewards Convenient No additional fees For international travel Keep track of spending Lets me pay in installments Gives better price Provides protection against fraud Modern way to pay LOW appeal and LOW association HIGH appeal and HIGH association HIGH appeal and LOW association AssociationwithDebit (top2boxagreementon10ptscale) (Base–DebitCardholdersAge18–24) LOW appeal and HIGH association
    • Visa Payments Forum | May 13 – 15, 2013 | Visa Public | Visa Customer Insights – Millennials Summary and Implications • Though 18–34 age cohort not growing, it is very dynamic as four million consumers turn 18 each year • Though technology engaged, new technologies will not be adopted for their own sake – in financial services value of usage must be demonstrated • Generational harmony presents cross-marketing opportunities – Parents as trusted advisors and influencers of their grown children – Millennials extending influence for their parents – will styles and needs converge? • Millennials have and will disintermediate the check – future of cash is less certain • Dominant payment theme among Millennials is control – which payment form and specific issuer provides this determines success – Likely a consequence of the explosion of debt, especially student loan debt among young consumers