Millennials (born 1981–1996) and Gen X (born 1965–1980) are driving the adoption of alternative payments such as digital and/or smart device payments as well as virtual cards. This is according to FNB’s analysis of alternative payment adoption trends among its customers.
FNB reveals that Millennials make up 64% of virtual card users and 57% of all digital payments. Gen X follows with 32% and 28% for virtual cards and all digital payments, respectively. Gen Z, those born between 1997 and 2012, are the third highest users of digital payments with 12%, but they lag Baby Boomers (born between 1946 and 1964) in the adoption of virtual cards. Baby Boomers make up 3% of both digital payments and virtual card users, while Gen Z accounts for 1% of virtual card users. Adoption among Gen Z is expected to increase rapidly over the next few years due to their renowned appetite for new technology.
FNB Retail CEO, Raj Makanjee, says, “We are pleased to see customers of all ages using more convenient and safer ways to pay as this bodes well for accelerated adoption among individuals and families. The adoption trends among our customers are consistent with our efforts to provide a wide range of alternative payment options while ‘democratising’ access to affordable smart devices and data through FNB Connect. The use of a digital solution such as our virtual card allows customers to maximise eBucks to make their money go further on day-to-day purchases such as fuel. In addition, those who use our virtual card also get purchase protection for qualifying purchases.”
According to FNB Card CEO, Chris Labuschagne, their customers have activated over 3 million virtual cards with over R6.6 billion in spend since the launch of the payment solution last year. “Our virtual card is available to individual customers on debit, fusion, and credit cards as well as business debit cards. It has a dynamic CVV (3-digit security number) that changes regularly to minimise the risk of fraud. Customers can use the virtual card for online shopping, streaming services, subscription payments and QR payments via Scan to Pay on the FNB App,” he says.
FNB has enabled its customers to load their Virtual Cards for contactless ‘Tap to Pay’ transactions on all FNB Pay-enabled digital wallets, including its own Tap to Pay and Scan to Pay, Apple Pay, Samsung Pay, Fitbit Pay, and Garmin Pay. Similarly, customers are encouraged to load their existing virtual cards or create new ones to use with the Google Wallet app, which can be downloaded from the Play Store. This gives them more options for contactless and digital payments.
FNB was recently named the Best Consumer Digital Bank in South Africa and the Best Mobile Banking App in Africa by Global Finance. FNB’s eBucks Rewards was ranked first in the world for its use of technology at the 2022 International Loyalty Awards, while FNB Connect was named Digital MVNO of the Year at the global MVNO Awards.