Two thirds of young people use a mobile wallet

• Two thirds (64%) of 18-25 year olds (Gen Z) now use a mobile wallet
• Six in ten (62%) 18-25 year olds feel frustrated if they are forced to make purchases with cash
• 48% of 18-25 year olds believe cash will be obsolete within 20 years

Two thirds (64%) of 18-25 year olds in the UK now use a mobile wallet, according to research released today by social money transfer app Moneymailme.

The research reveals that 48% of 18-25 year olds believe that physical money will be obsolete within 20 years, while more than a third (38%) say that we will no longer need it in 15 years’ time. Less than three in ten (28%) say that they don’t think cash will ever stop being used or produced.

The research, which surveyed 1,000 18-25 year olds across the UK, known as Gen Z, revealed that young people prefer alternative methods of payments to cash, even for small purchases. Eight in ten (79%) say that they make purchases under £20 at least once a day, but when asked how they feel when faced with a ‘cash only’ sign at a bar or a shop nearly two thirds (62%) say that they felt frustrated. One in seven (14%) said that they would be frustrated enough to leave and go elsewhere.

In terms of mobile wallet preference, PayPal, one of the oldest online payment services, is by far the most popular with more than half of 18-25-year old’s using it, while newer entrants to the market like Apple Pay (18%) and Google Wallet (9%) starting to gain market share.

While 36% say that they currently don’t use a mobile wallet only 14% say that they have no interest in having one, suggesting there is room for considerable growth in this market for services that appeal to the younger generation.

Nearly half of respondents (49%) say that they pay back their friends up to £10 per month, but almost a quarter (22%) wouldn’t consider a bank transfer for under £10, which currently leaves them reliant on cash to share money unless they have access to a mobile wallet.

Moneymailme CEO Mihai Ivascu said: “This generation of young people has grown up with mobile technology and for many of them using cash seems like a very dated concept, especially with the range of alternatives available to them. In 2015 electronic payments overtook cash for the first time in the UK[1] and as this generation gets older this trend is only going to continue until producing physical cash is no longer desirable.”

Moneymailme, which combines social interaction with the instant sending and receiving of e-money in over 130 countries, recently launched the fintech industry’s first app to offer video calls with cash transfer capabilities to make sending cash to a friend or family member a more personal experience.

Moneymailme is a social money transfer app that combines social interaction with sending and receiving available e-money, instantly. Moneymailme works on iOS and Android smartphones with free downloads. Registration has been timed in under one minute and the movement of e-money, file sharing and chatting is instantaneous.
Moneymailme partners with GlobalGiving UK, the largest global crowdfunding community that connects nonprofits, donors, and companies. Through Moneymailme’s Causes section, people can make donations in real time with zero fees and help make a difference in the world.