Millennial Mobile Payment Users: A Look into their Personal Finances and Financial Behaviors
Annamaria Lusardi, Carlo de Bassa Scheresberg, and Melissa Avery
Summary: The financial technology (fintech) sector is revolutionizing traditional financial practices, yet little information exists on users of these services. In this study, we examine untapped information from the 2015 National Financial Capability Study and the 2016 GFLEC Mobile Payment Survey to provide insights on the financial capability of American Millennials who use mobile payments. Using data from both surveys, we find striking differences in financial capability between users and non-users. Particularly, we find that users of mobile payments are more likely to overdraw their checking accounts, use credit cards expensively, borrow through alternative financial services, and withdraw from their retirement accounts. Even after we control for socio-demographic factors, results continue to show that mobile payment users are more likely to engage in behaviors that do not seem to follow good financial management practices.