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Evolving consumer-payment preferences, especially among Generation Y, is one reason why some state-government agencies have begun accepting electronic payments for property taxes and motor vehicle and court fees. The West Virginia Association of Counties cites Gen Y's clout as a reason it decided to accept credit and debit cards for payment for a variety of services. "They simply don't use paper checks," Patti Hamilton, the association's executive director, tells CardLine sister publication ATM&Debit News. The younger the constituents get, the more likely it is that credit and debit cards are their only method of payment." Indeed, Gen Y, usually defined as adults born between 1978 and 1989, is having an impact on the payments industry, say payments-industry executives. Studies have found that consumers who fall into the Gen Y category are using plastic, especially debit cards, more so than the average consumer. Though its research for a Gen Y report is not complete, Pleasanton, Calif.-based Javelin Strategy & Research says 54% of the 2,339 respondents it surveyed in September used a debit card to make a purchase in the week before taking the survey, compared with 43% who did before taking a similar survey in 2007. Javelin defines Gen Y as individuals between 18 and 24 years old. "When you look at younger folks, debit is a natural thing for them," says Javelin research analyst Mark Schwanhausser. "There is still credit card use among Gen Y, but the debit card is natural and something they are very comfortable with."
