It’s already clear that Gen Z is changing the world of online shopping and payment processing — potentially for the better and more practical. A generation native to technological tools that adapt to changes in the blink of an eye has industry-pushing expectations. Is this a conscious effort of Gen Z banking behavior to change digital payments, or are their actions telling companies how to innovate to stay competitive? The Gen Z Online Shopping Experience Understanding Gen Z financial trends requires everyone, from UX designers to bankers, to recognize how Gen Zers want to experience retail. What are their priorities? Well, and flexibility. they hinge on freedom As their nickname “Zoomers” hints, they’re the remote work generation, “do-it-for-the-vibes” stans, and well-researched product influencers. It might take a bit of teasing out, but these traits provide insight into their shopping habits: Transparency on fees and surcharges Numerous payment options, including buy-now-pay-later and cryptocurrency digital wallets Use of peer-to-peer (P2P) payment apps, like Zelle or Venmo Contactless payments for heightened safety and security advantages These aspects appeal to online and in-store shopping. Offering Venmo payments at your brick-and-mortar might seem wild, but that’s sometimes more appealing than tapping a debit card. It’s especially true when , a number that’s expected to grow. They want convenience. Appealing to the customer’s chosen method could increase profits by providing preferred payment platforms. 39% of Gen Zers use P2P apps After implementing multiple payment methods on your site and in-store, it’s time to dig deeper into the mind of Gen Z digital payment desires. They want to purchase items using these novel resources, but what drives them to use those methods in the first place? A lot of it is social media. Gen Z Financial Trends on Social Channels Instagram used to be a digital scrapbook, and Twitter a virtual diary. Now, of every product anyone could have advertised to them and want — a phenomenon known as social commerce. every platform is a megamall Millions of Gen Zers purchase a product after seeing it online — TikTok is a significant leader in this regard, especially with its ability to provide meme-worthy and quick viral product reviews and demonstrations. Businesses that leverage social media for more than advertising could see a noticeable uptick in sales. Social media management is a nice start, but the foundation of that success is optimizing shopping experiences for mobile devices. On average, Gen Z spends more time on — over 45 hours a week. While that statistic has a lot to unpack on its own, it highlights where retailers should invest their resources. their phones than a full-time job Go live. Shoot the video. Store owners have to make their websites and with eye-catching media to entice them. product offerings optimized for phones Images should load fast, and large-window landing pages must look just as good condensed on the most recent iPhone. Otherwise, Gen Zers will click away. Content drives their instant gratification, and diverse payment options turn the lead into a convert. The Expectations for Future Digital Payments Gen Z banking behaviors show they spend thoughtfully. Growing up during the 2008 recession, a global pandemic, and an inflation frenzy, they’re behaviors. money-conscious underneath seemingly frivolous These payment trends explain how businesses can prime themselves for digital payments of the future: Transactions that take mere seconds Demand for sustainable products Automated coupons and discounts First, tap-to-phone options are a start to expedited payment processing. Gen Zers may spend a lot of time researching products, but they don’t want to spend much time paying for them. This includes modern coupon clipping — for Gen Zers, it’s Google-hunting for discount codes. Their stingy nature will drive them to use apps like Rakuten or Honey to automate this process and save money, but how can organizations streamline it further? Companies that shave off even a few seconds during payment will please this generation. Additionally, increased social awareness of the environment, overconsumption, and the toxic impact of hypercapitalism make Gen Zers look for outlets that offer sustainable services. How are companies disclosing they’re offsetting shipping? Does the receipt show how much of their purchase goes toward eco-conscious charities? Companies that don’t find ways to include a will lose brand loyalty as Gen Zers seek more ethical options. sustainability plug in their digital payments The Gen Z Digital Payment Revolution Cash is out, CashApp is in. Storefronts must look to Gen Z for market research and digital payment glow-up. Speed, versatility, automation, and freedom encapsulate the generation’s shopping experience. Embracing these traits will garner free word-of-mouth advertising as influencers brag on TikTok how seamless your shopping experience is.
