To achieve growth and success past 2030, businesses must start to understand the living, shopping, and financial habits of Gen Z or Zoomers (consumers aged between 16 and 24) now and accept that they are very different from previous generations. This demographic, who never knew life without the internet and smartphones, currently represents the largest population group on earth. Members of this age group account for almost 2.5 billion people, surpassing Millennials in 2019.
For instance, mobile wallets are gaining traction, particularly in emerging markets where bank accounts have been historically difficult to access and financial exclusion is widespread, according to a report by global payments platform Thunes. Mobile providers have led a digital payments revolution in Asia, while in Africa, the major telecoms providers have offered similar digital payments solutions.
Further, according to the report, here are the expected trends:
• Social Media: Gen Z is influenced by social media more than any other generation. 8 out of 10 said they use social media on multiple occasions throughout the day. Three-quarters of Zoomers also check in multiple times each day in emerging markets, with two-thirds stating that they have purchased products they first discovered online. Not only is social media where Gen Z spend its money but increasingly where they are making it too, with a growing range of content monetization options offered by TikTok, YouTube, Patreon, Clubhouse, and Twitch.
• Mobile Wallets and Money Management: Gen Z has little enthusiasm for traditional financial products - be it bank accounts or credit cards. 62 percent of Gen Z’s don’t have any bank account at all. Mobile wallets are however growing rapidly and in some emerging markets, almost 50 percent of Zoomers now use this type of account.
• Shopping: Zoomers spend a slightly larger proportion (19 percent) of their money online shopping than they do on socializing, eating out, and entertainment - this is the case in developed and emerging markets.
• Cash Is Down, But Not Out: About a quarter of Zoomers in western markets almost never use cash. The physical currency remains important in offline spending in emerging markets, but its influence is in decline. This is not surprising given the choice and accessibility of digital tools.
• Focus on Brand and UX: One of the most important drivers for Zoomers considering purchase and payment methods is brand trust - it became the #1 factor for choosing a primary payment method in 7 countries. This is the case in Western and emerging markets. User experience was identified as the second most popular factor, which, in an online world, affects loyalty too.
Peter De Caluwe, CEO, Thunes said: “To many, Gen Z is a misunderstood and overlooked generation. This is a generation to which “dial-up” and “desktop” are meaningless words and who don’t just think “mobile-first”, but live and breathe in apps, social media, digital platforms and soon - the metaverse. We should start to take this generation seriously as the revenues and strategic plans of many businesses - especially those that are relying on fast growth - are dependent on them”.
As the world moves online, social media, content and entertainment platforms, payment providers, and consumer brands looking to capitalize on Zoomers and their online spending habits must consider all the factors above. Gen Z will be influenced first, not by price or even range or scarcity, but by their social circles, brand engagement online, and trendy, convenient, trustworthy payment options.
“We knew that social media would be a key part of a Zoomer’s daily life, but what our survey helped to reveal is the extent to which they are driving spending activity in this demographic. Another important aspect of their lives that we wanted to explore is their relationships with money and their affection for mobile-driven payment methods. As a company that embraces the diversity of Payments and builds the next-generation Payments infrastructure for the world, we will use these insights to shape our Payment capabilities and solutions for the large group of the Internet businesses that we serve,” Caluwe further stated.
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