Attracting Millennial Shoppers for a Successful Holiday Season

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Attracting Millennial Shoppers for a Successful Holiday Season

By Amanda Miller, Head of Global Communications, PayPal Credit - 11/30/2015
The National Retail Federation recently predicted that overall holiday sales will increase almost four percent this year, with online sales rising at an even steeper rate (nearly eight percent) to more than $100 billion. With continued strong online shopping growth, it’s more important than ever for retailers to distinguish their online shopping experience so they can capture even more shoppers, especially millennial shoppers.
 
Millennials have now surpassed baby boomers in population size, but they are steering away from traditional credit cards used by their parents. In fact, 63% of millennials now say they do not have a credit card, and they are seeking out payment options that are as digitally native as they are.  
 
The Move to Digitally Native Credit
 
Recent findings from PayPal and Koski Research suggest that online credit may be way to help encourage more holiday purchase volume and win over millennial holiday shoppers; millennials are adopting digitally native credit at rapid rates. In fact, millennials are the fastest growing segment of PayPal Credit shoppers, representing 33% of customers in 2015.
 
Retailers that want to take full advantage of holiday spending would do well to look for ways to integrate digital credit options into the online buying experience to attract millennial, and other, shoppers. In the PayPal Millennial Credit Survey, 50% of millennials showed they love technology and are willing to use new credit offerings from companies they perceive as innovative. More than one-third of them (about 23 million consumers) consider credit cards to be “old school,” and say they are more likely to be annoyed by the process of using traditional credit cards online than their parents’ generation. They’ve also learned hard lessons by watching their parents navigate the Great Recession; they want to keep fees to a minimum and are much more engaged in their finances, seeking out financial products that are transparent and affordable.
 
Most important for retailers, this generation is not made up of the stereotypical “broke millennial.” When asked about items they would be likely to purchase through the end of this year if given the option to use one-click credit they could pay back interest-free within six months on their own schedule, millennials said that they would be likely buy clothing and accessories (45 percent), electronics (33 percent), and travel (27 percent).
 
Digital Credit Drives Sales
 
Beyond the millennial generation, digital credit is a way to boost online shopping among all demographics by providing near instant credit at checkout. Combined with options like interest free financing for six months, it is a formula that has proven time and again to increase average order value, conversion rates, customer acquisition and satisfaction. Digital credit stands out as a modernized payment option, providing many advantages to customers and merchants alike.  

Technology is disrupting the credit industry, bringing positive changes to consumers and businesses. It is making credit more transparent and user-friendly, enabling people to manage their money in simpler and more personalized ways. In light of these findings, we believe digitally native credit stands out as a way for retailers to turn the changing face of credit into a competitive advantage during this holiday shopping season, and beyond.

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