A conversation about payments
PXP Financial presented a sentiment audit at ICE London 2020 designed to better understand the impact of Gen X, Y and Z on the online industry.
SUMMARY OF SENTIMENT AUDIT • Generation Z is yet to have a huge impact on the
online payments industry – but that’s set to change as the age group matures
• Millennials are still the biggest spenders when it comes to online gambling
• Generation X are less likely to pay with cash than Millennials, preferring Credit cards
• Debit card payment – in the varying forms (i.e. mobile wallets / Paypal etc.) are still the most trusted form of payment across generations
• Digital Payments are being used on a daily basis by the majority of gamblers
• Generation X is driving the improvement on customer experience, but Millennials are more interested in speed at checkout
• Generation X prefers the convenience of shopping from home over Millennials
• There was a polarizing perception on the importance of credit cards to the gambling industry - almost a 50/50 split
• Responses to the ban were mostly negative, increasing in negativity the older respondents got
DEBIT CARDS LEAD THE CHARGE FOR DIGITAL PAYMENTS • There is a plethora of digital payment methods available for gamblers to make bets and play slots (amongst other gaming machines) and the leading form of payment is debit cards.
• Over 45% of respondents utilised debit cards as their primary payment method for gambling. When its varying forms are added to the equation, such as mobile wallets, then this percentage increases to more than half with 53%.
• Millennials are the biggest users of debit cards amongst the generations with 49% using it as their primary payment method. It was also the most used amongst generation Z, a similar result to our early ‘Generation Z in the Highstreet’ whitepaper.
• Not every generation uses debit cards as their primary payment method, however. Only 25% of Generation X prioritise debit cards and instead the majority, at 59%, use credit cards instead.
• Combined with a general observation of the wider payments industry, it is interesting to see that despite an increase in APMs across the market, the majority customers still rely on the basic debit card, and debit associated, payment method.
• Generation Z is anyone born between 1996-2012. • Millennial (Generation Y) is anyone born between 1981-1995. • Generation X is anyone born between 1965-1980. • Baby Boomer is anyone born between 1946-1964.
MILLENNIALS ARE NOT RUINING THE GAMBLING INDUSTRY • From those surveyed it was the Millennial age group that we shown to be the biggest spenders when it came to gambling with digital payments.
• 52% of attendees spoken to believed that millennials spent the most amount of money while gambling. The majority of this perception came from the millennial age group itself, although this perception is shared by some of Generation X.
• Generation X mostly believed its own age group to be the biggest spenders at 33%. The difference between Generation X and Millennials from this the Millennials surveyed, showing why Millennials are still perceived to be the biggest spenders.
YAY OR NAY? THE POLARISING OPINION ON THE CREDIT CARD BAN! • One of the biggest news stories of 2020 for the gambling industry was the banning of credit card use by the Gambling Commission. Announced on the 14th January 2020, and going into effect on the 14th April 2020, gambling customers will no longer be able to use credit cards to bet online, with an exception given to the National Lottery.
• Thoughts around this ban were very polarizing during ICE London with 55% believing it to have a negative effect on the industry with the remaining 45% split between positive and no effect.
• Both Millennials and Generation X were primarily negative, the latter more so with 67% of respondents feeling this way. This isn’t too surprising when we consider that credit cards are the most used payment method for that generation.
• The majority of positive reasons for the ban came from the same reason it was implemented: to protect consumers from overspending. This was the primary positive reason from every generation, from 52% of respondents.
• The negative beliefs for the ban were much more varied, however across generations the primary reason was always the same: this ban will lead to less profits. 25% of all respondents believed this to be the case, with other major reasons being less convenience (14%) and less option (11%).
GIO MAY/ JUNE 2020 49
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