If we are looking at trends that will change the payments industry in the future, then Gen Z is going to be the biggest decider of what will change and how fast it will change. They are the ones who will be at the forefront of the digital payment revolution, so it is vital to keep them in mind if payment companies want to stay ahead of the curve. In this post, we’ll talk about the way Gen Z might have a serious impact on the payments front.
Meet the Gen Z
Gen Z’ers are those consumers born between 1996 and 2010, compared to the Millennial’s who were born between 1982 and 2004 and the Generation X who were born between 1965 and 1983. Can you imagine that the Gen Z is a generation that has not seen a world without Facebook, Google or Amazon? Millennial’s were popularly known as the Internet generation and now the Gen Z is known as the smartphone generation.
73 % of Gen Z’ers use their smartphone at least once an hour
Gen Z – also referred as the ‘SEE NOW, BUY NOW’ generation wants all things instantly, from food to entertainment and making payments. The attention span of Gen Z is lowest compared to all the previous generations. This is clear with their preference to platforms like Instagram and Snapchat, compared to Facebook by the millennials. Gen Z individuals can be seen spending most of their time in front of different screens from the smartphone to the laptop and the tablet. They are constantly demanding for content that is unique and attention-grabbing. They want an on-demand world where they can get what they need instantly.
The unique needs of Generation Z
We should realize that Gen Z is the future customer base of the payments industry and they come with a unique set of needs. They are most likely to make spontaneous purchases & payments using their mobile devices & cards. Gen Z are comfortable with all kinds of technology from wearables to digital wallets. They are the ones who wish for personalized experiences in all their digital interactions. Recollect the recent series of ad campaigns from Visa to promote their contactless payments. Their primary focus is on these Gen Z audiences who’re always on the move and never afraid to try new things.
India has roughly 200 million children under the age of 18, and 69 million of them reside in urban areas.
Gen Z wants digital tools to take care of their finances and help them spend smartly by utilizing discounts and cashbacks as much as possible. They can’t tolerate poor UX when it comes to payments or slow payment gateways. For them secure transactions are the norm, rather than the exception. They cannot accept anything less than real-time payments as speed is a necessity in their lives. At the end of the day, they wish to have a completely seamless payment experience and whoever can provide them that will win the payments race.
So, how will Gen Z disrupt the payments industry
There is no doubt that with the payment’s habits of the Gen Z, cash is soon going to slowly disappear. You can see how Gen Z are big users of apps like Tez, Whatsapp, Apple Pay, etc. This will make sure that leather wallets become a thing of the past. We could see social media and payments being integrated in never seen before ways to cater to them. As Gen Z’ers start joining the workforce, their complex financial needs will need a radical solution which will by default revolutionize the payments industry. Same goes for their business needs. They understand the importance of tech in business and would be the first to bring a true omni-channel payment transaction solution for their business. Never missing a sale from their customers – be it inside the store, online or at customer’s home.
40 per cent of urban children regularly dine out at expensive restaurants and 23 per cent use their parents’ credit cards to buy new things.
Tech companies around the world are trying to design new systems that can cater to the payment needs of the Gen Z. Whoever can ensure the best combination of quality, speed and functionality will see the Gen flocking towards them, as they are ones who try out every new technology but only stick with the best. So, the payment technology of tomorrow needs to have extreme agility, flexibility and security to change constantly to the needs of the customers.
Well, that’s the third payment trend in the series. Stay tuned for more future trends in the upcoming blog post.