The trajectory of payments has changed dramatically in the last decade. And Gen Z has been instrumental in deciding where payments should go next.
It’s not surprising. Gen Z are digital natives, expertly navigating the online world from the minute they could hold any kind of electronic device. Businesses should be in no doubt that even the youngest of this generation (currently just 11 years old) are having an impact.
That’s good. Because young people should be spearheading change in the world, particularly when it comes to something as fundamental to everyday life as payments.
Revolution and revelation
For this digital generation, payments are how they open up real-life possibilities. From shopping to gaming, supporting charities, getting paid for work, and paying back friends, Gen Z are creating opportunities and shaping payments to fulfill them.
And because payments have been quick to adapt to these new landscapes, businesses are able to keep up by adopting a unified approach.
Take social media platforms for instance. They went from being places to connect with friends to being shopping destinations, where engaging with brands and shoppers-turned-influencers is a daily ritual and another way to buy things.
This generation does not distinguish between channels. Instagram or in-store, they expect seamless payment experiences on any platform, via any device, and in any location.
Gen Z also expect to be recognized. They want their preferences remembered and their loyalty rewarded. The payment moment has become so much more than just closing a sale, so personalization is key.
Which brings me to the subject of revelation.
This is a generation that has always been comfortable sharing of itself, their lives playing out across multiple social media platforms in real time every day. They’re happy to part with personal data—but they want a fair return for it.
With their hyper-personalized approach to everything from gaming to shopping, entertainment and education, Gen Z are defining the way all generations use payments.
This is great news for businesses.
Innovations like buy now, pay later (BNPL); buy online, pick up in store (BOPIS); app-based loyalty programs; and rewarding subscription programs have all been made possible by people’s willingness to share their data via payments. Savvy businesses should collate, analyze, and morph that data into rewarding payment moments.
So how can your business be more Z
Don’t be overwhelmed. Yes, it might feel like things are changing faster than you can say ‘tap to buy’ but you need to view this as a wonderful opportunity.
Here’s a checklist for you:
- Unified commerce: Can you meet your customers where, when, and how they want to shop?
- Personalization: Are you using tokenization to collect, store, and recall customers’ data?
- Innovation: Can your payments partner support the rapid changes this generation demands?
If yes, congratulations—you are Gen Z enabled. If not, then let’s talk.
Disclaimer: Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa neither makes any warranty or representation as to the completeness or accuracy of the information herein, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.