Older People Are More Tech-Savvy than ­Expected

There is a common misconception that seniors do not use digital payment methods. In fact, the Silent Generation, Baby Boomers, and Generation X are often less tech-savvy than younger people because they did not grow up with today’s digital systems and therefore have less exposure to them. Security concerns and the complexity of recent technologies are common reasons for this reluctance. In addition, these age groups often find it more difficult to adapt to the rapid pace of technological change and to learn new procedures.

However, more and more older people are interested in and using digital payment methods – even in the so-called cash countries of the DACH region. According to the Swiss National Bank, in 2017 only around 20% of people over the age of 65 regularly used contactless payment methods. Today, the figure is over 60%. Austria and Germany saw a similar trend over the same period, with the corresponding figures rising from 20% to 55% and from 15% to 50% respectively. This puts the German-speaking countries well below the European average of around 70%, as reported in the World Payments Report 2023 by Capgemini and BNP Paribas. However, this figure should be viewed critically, as not only Germany but also the other most populous European countries are well below it. Only the Nordic countries, with their traditionally high acceptance of cashless payment methods, have above-average figures. Norway is at 75%, Sweden at 80%. Denmark and Finland follow with 70% each.

In North America, usage is around 65% for the age groups described. Asia-Pacific countries such as Japan and South Korea have rates of around 60%. Latin America brings up the rear with even lower but growing usage. About half of older people there use contactless. All regions of the world have one thing in common: The trend away from cash to contactless payment methods seems to be unstoppable – even among seniors.

According to the report, the volume of cashless transactions worldwide will grow by 15% annually through 2027. The expansion of instant payments, the adoption of ISO 20022, and the proliferation of payment methods such as wallets, QR codes, and account-to-account payments will further support this trend.

Despite this growth, companies face a number of challenges, including inflated costs and revenue pressures. This leaves little room for innovation.

Ongoing digitization and the introduction of modern technologies will definitely drive the use of digital payment methods. This is also true for older generations, who are increasingly recognizing and making the most of the convenience of these payment methods.

Gabriel Juri
SIX