For Payments, Generation Z Is 'Generation E-Wallet'
Though often mistaken for millennials, Generation Z has an entirely different set of values that need to be acknowledged when developing a plan to connect with these buyers.
Born between 1995 and 2005, Gen Z has never known a time without the internet and has high expectations for mobile experiences. While technology is at the center of their lives, they also care about causes and social issues. Now that retailers have figured out how to market to millennials, it’s time to start fresh with the newest generation.
So, what should retailers know about Gen Z?
Today’s payment technology keeps getting faster—and Gen Z is here for the ride. Sixty-eight percent of Gen Z’ers say they want instant person-to-person payments. To keep up, retailers should explore options to make their payment processes quick and easy. Some viable online payment options include PayPal or Stripe, secure payment companies that transfer funds from a user’s account to an online business. In store, businesses can utilize mobile wallets like Samsung Pay or Apple Pay, which allow shoppers to pay for purchases by simply waving their phone over the card terminal.
Retailers should also consider checkout rewards and member programs for their Gen Z shoppers. Like most demographics, loyalty programs are valued by Gen Z — but they need to be online. Punch cards are a thing of the past — it’s time to go digital with free reward programs that are easily accessible via an app or the user’s online account.
Social media platforms such as Facebook, Snapchat and Instagram have changed a lot in the past two decades — and Gen Z has grown right along with them. Today, 95 percent of teens have access to a smartphone, while nearly half say they are online “almost constantly.”
Again, social media is a powerful way to connect with Gen Z shoppers. Four out of five Gen Z members say they allow social media to influence their purchasing decisions. From the power of product promotion by social media influencers to the power of consistently engaging content, businesses can use a well-planned social media campaign to grab a Gen Z shopper’s attention.
With important differences that set them apart from previous generations of consumers, Gen Z offers up a new challenge for retailers. If you’re a retailer still marketing to millennials, it may be time to shift gears and update your methods to appeal to this new generation of savvy shoppers.