Move Over Millennials – Gen Z is Shaping the Future of Payments

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In recent years, the media has spent a lot of time covering millennials. We’ve actually done the same. You can learn about how millennials are shopping and paying, as well as five of the best millennial marketing tips.

Part of why this generation has received so much media attention is because they were coming of age when the Great Recession hit. As a result, they had to face a lot of harsh realities, like moving back in with their parents after college or taking on incredible amounts of student loans.

While millennials are still a very influential group, it seems like they’ve been hitting their stride. That includes settling into predictable lifestyle habits. Because millennials have been looked at so closely, we want to shift the focus a little — on to Generation Z.

Gen Z is just starting to see some signs of the media attention millennials have had for so long, so you’re not alone if your understanding of this group is a little more hazy. But by the time you finish reading, you’ll be much more up to speed.

What is Gen Z All About?

The current age for members of Generation Z is those between four and nineteen. Five of the traits often used to describe Gen Z are self-reliant, innovative, realistic, persistent and self-aware. Not only is digital integration a shared trait for all members of this generation, but many have led digital-first lives. With many Gen Z’ers at or reaching the point of becoming significant consumers, let’s get into what their influence means for payments.

Why is Generation Z So Important?

One question many experts have about this generation is whether they’re going to be less likely to spend and more likely to save, given much of what they’ve seen growing up. Because that question is still up in the air, payment experiences need to remove as much friction as possible.

A great example of this is banks continuing to move towards branch-less models. Given the strong preference this generation has for digital and mobile, being able to manage their finances from any device is right in line with what they want.

As far as branding goes, there’s a lot of data that shows Gen Z already prefers businesses with mission-based approaches. The same is true for businesses that take a rebel stance and aren’t afraid to shake things up from the way they’ve always been done.

To wrap things up, we want to answer the question of what all this means for your business. Given the certainty of Gen Z continuing to drive changes across the payments space, the most important thing you can do is work with a processing company that’s investing in the future.

If you have doubts about your current processor, the best step you can take is to start evaluating different processing companies.

Posted on Tuesday, April 3rd, 2018