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The retail landscape is experiencing a shift. At the forefront of this transformation are Generation Z (Gen Z) and Millennials. As the pioneers of the future, these generations are not only altering our shopping habits but also transforming the way customers and merchants interact. Let’s explore insights that shed light on how Gen Z and Millennials are revolutionizing the world of shopping.
As of 2020, Gen Z (aged 9-24) and millennials (aged 25-34) together make up 42% of the US population (Source: US Census Bureau 2020). Globally, statistics indicate that 2.47 billion individuals belong to Gen Z, with 99% owning or having access to smartphones (Review42).
The generations encompassing Gen Z and Millennials are spearheading efforts to reshape shopping behaviors. Around 30% of Gen Xers and 36% of Millennials plan to make essential purchases and shop in physical stores less than before, favoring the convenience and price comparison benefits of online shopping (Kibo Commerce) (McKinsey & Company).
While 3% of individuals aged between 55 and 64 actively use digital banks, a remarkable 21% of young adults aged between 18 and 24 engage with digital banking platforms. Digital banks are becoming increasingly popular among younger demographics due to their payment solutions (Deloitte United States) (PwC).
Alternative methods of payment, such as Buy Now Pay Later (BNPL), are preferred by younger generations. Gen Z and Millennial BNPL users, in particular, value this option as it helps them avoid accumulating revolving debt.
Impressively, 23% of Gen Z and 38% of millennials own cryptocurrency (Statistics based on Investopedia). These age groups are also quick to adopt person-to-person (P2P) payments and digital wallets. It is estimated that by 2025, 62% of Gen Z will be using P2P apps (crypto.news).
The availability of payment methods significantly impacts purchasing decisions. Overall, 44% of customers would abandon a purchase if their desired payment method is not available. This percentage rises to 51% among Millennials. To cater to these tech shoppers’ expectations, merchants are advised to offer relevant payment options.
Gen Z and Millennials have emerged as influencers, revolutionizing shopping behaviors and shaping the future of consumerism. Next, we will delve into their shopping preferences, behaviors, and expectations.
Generations, including Gen Z, who grew up with technology, and Millennials, who were early adopters of the internet, are revolutionizing the conventional commerce model. Their natural affinity for all things digital has significantly influenced the growth of e-commerce mobile shopping and the increasing demand for online experiences.
Social media plays a role in shaping purchase decisions for Gen Z and Millennials. Peer recommendations, influencers, and user-generated content influence the popularity of social commerce platforms.
Gen Z and Millennials place a growing emphasis on sustainability best practices. These generations prioritize brands that align with their values, pushing the industry toward eco-socially responsible practices.
Gen Z and Millennials have a preference for shopping experiences that are centered around devices. The rise of apps, mobile payments, and the need for user-friendly interfaces cater to these consumers’ on-the-go nature.
Both Gen Z and Millennials crave personalized shopping experiences. Features such as customization options, personal recommendations, and interactive elements contribute to creating a sense of uniqueness and exclusivity.
Cutting-edge technologies like augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) have significantly impacted the shopping experiences of Gen Z and Millennials. These innovations create captivating and immersive environments.
As influencers in the realm of shopping, Gen Z and Millennials are redefining the landscape through their commitment to ethical values and desire for personalized experiences. Brands that comprehend and adapt to the preferences of these generations have an opportunity to flourish in an era where consumers hold influence. In this evolving world of commerce, Gen Z and Millennials are not consumers but catalysts driving a revolution in shopping trends. The rules of the game have changed, with Gen Z and Millennials taking charge.
Prepay Nation offers a range of products that align perfectly with the preferences and expectations of Gen Z and Millennials. Gen Z and Millennials show an inclination towards flexible payment methods. Prepay Nation understands this and seamlessly integrates its API to cater to their preferences. Gen Z and Millennials have a mobile-first approach when it comes to managing their finances. With Prepay Nation’s platform seamlessly integrating into apps, they can gain access to a range of over 10,000 prepaid products for a comprehensive mobile financial experience. Financial inclusion is something that deeply resonates with Gen Z and Millennials’s values. Prepay Nation ensures that people have access to products, making financial services available to a broader audience. Being globally connected is crucial for Gen Z and Millennials. Through Prepay Nation’s API integration with apps, they can enjoy the benefits of prepaid products that align with their global lifestyle. Gen Z and Millennials greatly prioritize responsibility in their choices. Prepay Nation shares these values by being committed to inclusion and contributing to the creation of a responsible financial ecosystem. With a focus on innovation, mobile accessibility, and social responsibility, Prepay Nation is at the forefront of shaping the future of financial services for these influential generations.
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Author
Kim Fajardo, Corporate Marketing & Exec. Support Manager