Gen Z’s shopping habits: The future of payments
With over 2.5 billion people born between 1997-2013, Generation Z is becoming the largest population in the world. With their vast numbers and unique shopping behaviours, this dynamic group is revolutionising the way businesses operate. As a business owner, it’s essential to understand the psychological factors that drive their behaviour and tailor your brand to meet their expectations. So, we’ve come up with a brief guide in which we’ll cover everything you need to know about Gen Z’s shopping habits and preferred payment methods:
Who are Generation Z?
Generation Z is the future, and businesses need to start thinking of them that way. They’re quickly turning into the generation with the largest spending power, with over $300 billion spent across stores worldwide. By 2029, they’re expected to make up almost 3/4 of the workforce! Therefore, a lack of understanding of this emerging consumer base will certainly set up your business for failure.
How is Gen Z different from previous generations?
Gen Z’s shopping habits have been shaped by their unique experiences, including growing up in the digital age, the recession, and, more recently, the COVID-19 pandemic. As a socially connected and well-informed generation, social causes and responsibility are key considerations for them. Therefore, if you neglect social awareness as a brand, you may be turning consumers away.
How to tailor your brand to Gen Z:
- To retain customer loyalty, it’s no longer enough to just offer a good product or service. Through the power of social media, your brand needs to consistently align with Gen Z’s values.
- Nowadays, owning an e-commerce store is as important, if not more, as owning a physical store. Your business needs to show how your products offer long-term value for customers, adhering to Gen Z’s need for investments to reconcile their financial loss.
- Sustainable business growth and incorporating environmentally friendly decisions into your brand will show Gen Z that your company’s ethics line up with their own.
How does Gen Z shop?
Over half of Gen Z use Instagram to find new products and services, and 70% of them shop online using a smartphone. Therefore, it’s essential to have an easy-to-navigate mobile version of your website, preferably in app form to encourage regular site visits.
Offering short-term rewards like discounts is an effective way of increasing conversions, and free delivery is also a critical factor in Gen Z’s purchasing decisions. Peer feedback is highly valued by the generation, so allowing for reviews on your website may be the difference in the customer deciding to make a purchase or not.
How does Gen Z pay?
Convenience is a dominant driver of Gen Z’s motivation to shop, and their preferred payment methods include buy now, pay later (BNPL), peer-to-peer (P2P) payment apps and digital wallets. Out of all the generations, they’re most embracing of new payment innovations such as cryptocurrency and the potential of mobile wallets; these shouldn’t be overlooked. Almost 70% of Gen Z consumers find shopping more enjoyable when they can use automated payments at checkout, so investing in this technology will help enhance their shopping experience and increase conversions at checkout.
Understanding Generation Z’s shopping habits is essential if you want to remain competitive in the ever-changing market. Tailoring your brand to meet their expectations, ensuring an easy-to-navigate mobile version of your website, and offering preferred payment methods are crucial factors in securing future sales and will set you on the right path to ensuring your business’s future success!
