UK Millennials have growing security concerns around sharing personal information with retailers, but their need for a convenient shopping experience still outweighs these worries, according to new research released by LexisNexis Risk Solutions.
The report, UK Millennial Study: Privacy vs. Customer Experience in Retail, shows that despite Millennials being digitally connected via smartphones and laptops, more than half (52%) are concerned about having their identity stolen through online, or mobile/app-based activities, with women more concerned (65%). The research also found that 84% of Millennials do not believe that their personal information is fully protected online.
This tug of war continues with the research showing that 89% of Millennials are still shopping online at home, with nearly half (47%) on their smartphone and 29% on their tablet. Worryingly, 93% also expressed that they do not fully trust retailers with their data. This could suggest that because Millennials are task-rich and time-poor, the convenience and flexibility that online shopping offers still prevails. In fact, UK retailers are predicting that online shopping will contribute to one of the biggest shopping days this festive season, with revenues set to hit £901 million.
Not only does the research highlight Millennials' security concerns, it also demonstrates the challenges that they face today, including barriers to securing credit. The study shows that only 38% of Millennials own a credit card, suggesting that younger Millennials in particular are less likely to have the credit history or income to qualify for a credit card. With affordability criteria for loans and mortgages much harder to come by for young people, this highlights that steps towards greater financial inclusion for all is needed.
Surprisingly, the finding also showed that nearly a fifth (18%) of Millennials have not used cash at all in the last two months (60 days), which supports MasterCard's research that the rise of contactless and digital payments is slowly creating a cashless society. As society becomes more digitally focused, retailers may risk losing customers if they do not adapt to the demand for alternative payment such as contactless card terminals and Apple Pay.
Steve Arnison, Director, LexisNexis® Risk Solutions said: "These findings highlight the unease that many Millennials feel about information sharing, particularly when it comes to online and mobile transactions. Retailers today must recognise that customer privacy concerns will continue to increase as society becomes more digitally connected. As such, businesses will need to take proactive measures now to protect their customer's best interests and meet the demands of an increasingly digitally-savvy customer base."