Oct 31 2007 : U.S consumers under 35 years of age are developing very different online payment habits from adults over 35, says JupiterResearch. The U.S.-based consultancy says that younger U.S. adults are driving much of the usage of PayPal and debit cards for online purchases.

According to a JupiterResearch survey, 48 percent of U.S. consumers aged 25 to 34 prefer debit cards for Internet transactions, as compared to only 39 percent of all online consumers. Thirty-four percent of online consumers aged 18 to 24 prefer PayPal or similar alternative payment services versus 27 percent of all online consumers.

Rival services to PayPal in the U.S. include Google Checkout and Bill Me Later.

Older consumers tend to favor credit cards for Internet purchases, according to JupiterResearch.

Edward Kountz, a JupiterResearch Senior Analyst, says payment service providers must develop marketing and product strategies to meet the payment habits and needs of younger adults. “This will include card features tailored to younger adults’ lifestyle needs, and marketing efforts that embrace emerging social media,” he says.

The difference in online payment habits between younger and mature consumers is directly linked to social and technology trends that have emerged in the past two decades, JupiterResearch says. The introduction of the Web, the maturation of PayPal and related services, the emergence of debit and stored-value cards, and the availability of data-capable cellphones are embraced by younger consumers, as they have co-existed with technology all their lives.

“Card issuers must keep an eye on the emerging data habits of younger adults, and pay special attention to how their payment and data preferences feed into tomorrow’s payment-product and form-factor innovations,” says Jupiter Research President David Schatsky. “Issuers need to establish an early understanding of younger adults’ likes and dislikes with regard to emerging payments services.”

Via:  ePaynews.com