As the newest generation to come of age, Gen Z has been raised in an era of technological advancements and digitalization. As a result, it comes as no surprise that they differ from their predecessors when it comes to payment methods. Gen Z has been quick to adopt new modes of payment, such as digital wallets and mobile payments, and are also more likely to use peer-to-peer payment apps than traditional banking avenues.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Gen Z is Reaching Adulthood and Merchant Service Providers Need a Plan
Key Payment Methods Used by Gen Z Consumers
- 35% use a major debit or check card usable anywhere
- 17% use a major credit card usable anywhere
- 17% use cash
About Report
Gen Z, defined as those born in 1997 or after, must be a top priority for all merchants and their service providers. The generation includes consumers as old as 25, meaning the generation is already spending as adult consumers, and the age group’s spending will skyrocket in the years to come. Merchants need to build relationships with Gen Zers now in order to rack up sales and have relationships with young consumers that could last for decades.
But merchants, especially small- and medium-size businesses (SMB), don’t have the time or ability to really consider and incorporate Gen Z’s payment preferences. Many merchants hand off their payments operations to service providers that handle acceptance, acquiring, gateway services, and more. That means it falls to these providers, such as payment facilitators (PayFac), acquirers, and point-of-sale (POS) technology providers, to help their merchants best serve Gen Z by identifying Gen Z’s preferences and finding ways to position merchants for success.