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Direct deposit meets Gen Ys environment concerns
HERNDON, Va. (9/12/11)--Gen Y members are more likely than other generations to use direct deposit to reduce their impact on the environment, according to a new study by NACHA--The Electronic Payments Association--and PayItGreen. This has implications for credit unions looking to attract young adults as members. Twenty-seven percent of Gen Y say they use direct deposit to help the environment while 19% of other generations do so, per new findings from the 2011 PayItGreen Survey, unveiled during National Payroll Week, Sept. 5-9. Most Gen Y members said their habits can help change the world for the better, current research shows. A separate survey concluded that 89% of Gen Y are likely to switch from one brand to another--if price and quality are equal--when the second brand supports a cause. “Gen Y brings a new energy to products and services that support causes like environmental sustainability,” said Janet O. Estep, NACHA president/CEO. “Although convenience is still the number one reason that all generations use direct deposit, Gen Yers are leading the environmental charge to help reduce paper use by receiving their pay electronically.” The 2011 PayItGreen Survey also found that reducing clutter was a relatively greater priority to Gen Y (32%) than other generations (21%) in choosing direct deposit. Convenience was the most-cited reason to choose direct deposit for all generations--70% for Gen Y and 72% for other generations. “A quarter of Gen Y respondents cited environmental reasons for using direct deposit,” said James Van Dyke, Javelin Strategy & Research president and founder. “That might not seem like a huge number, but it’s noteworthy to us because it suggests behavioral motivation for this younger generation. If nothing else, businesses would be well served to target their payroll campaigns differently to Gen Y than other generations.” The 2011 PayItGreen Survey also noted that 38% of late adopters or “laggards” said they used direct deposit because their employers require it. The inherent safety of direct deposit versus paper checks was cited by 36% of Gen Y respondents and 35% of non-Gen Y respondents as a motivator for use. “We’re always talking about how to switch that last 25% over to direct deposit,” said Estep. “This research shows that where state law allows, employers may want to consider requiring employees to receive their pay electronically. Once employees start using direct deposit, its safety, security, and convenience make them true believers. They wonder why they didn’t do it sooner.” The PayItGreen Survey 2011 is based on data collected by Javelin Strategy & Research. The online survey polled 3,500 U.S. adults. The Credit Union National Association is a Go Direct national partner and supports the check-safety and cost-savings goals for the federal program. Go Direct is a national campaign designed to motivate more Americans to select direct deposit for their Social Security, Supplemental Security Income, Veteran’s Administration Compensation and Pension and other federal benefit payments. The U.S. Department of the Treasury and the Federal Reserve Banks are sponsoring the campaign. For more information, use the link.
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