Gen Z shoppers: they want simplicity, speed, and touchless payments

All the Gen Zs need in processing payments is convenience.

Without offering frictionless payments and a comprehensive set of system tools to meet the demands of this up-and-coming generation born between 1997 and 2012, retailers can say goodbye to Gen Z as customers. Besides, these people also like unique in-store experiences, relevance, and newness while shopping and are careful about spending habits.

Gen Z shoppers want authenticity and they do not hurry to build brand loyalties. They expect value in a brand and if not finding any, they will shop elsewhere. Retailers targeting this buying category need to: focus on social media advertising, truly understand Gen Z culture, take a stance on social issues, offer buy now, pay later (BNPL) purchase options.

Representatives of Generation Z do not refuse to pay more for environmentally friendly products or for brands that share their social and political views. But without providing convenient payment methods, retailers are conducting a losing proposition. To meet these new demands head-on, retailers must invest and improve their overall checkout experience.

According to a 2020 study by Fiserv, 70% of Gen Z shoppers still planned to choose contactless payments after the pandemic because it is simple. Businesses need to prepare for the new payment demands.

Customer engagement is of utmost importance. That process needs to be embedded in the entire journey to a purchase.

The world of software and payments has become very verticalized and diverse. Specific software is required in restaurants of different types and cuisines, for instance.

A second trend will be a much more open architecture. This lets retailers plug in some of these value-added pieces to their existing systems to meet the customers where they are.

Plenty of software platforms try to own every piece of an ecosystem. Opening that ecosystem allows for more players to conduct transactions in their specific markets. That is why retailers must research the wide variety of payment tools that are available.

Gen Z consumers differ from other age groups primarily by their insistence on getting speed, contactless, and wallet payment forms. These include Apple Pay/Google Pay and Buy Now buttons. Buy now, pay later is the biggest in this group. Security is not their biggest concern. Stored credentials for faster checkout are the minimum offering.

UIs need to be simple and have minimal interaction required of the consumer. Retailers should update all user interfaces for one-click and wallet payment types.

Gen Z and Gen Y grew up with the internet and have the most need for wallets, BNPL, and mobile technologies. As a result, Zoomers expect a mobile-first customer experience and digital ads are not as effective because they have learned to tune them out.

Gen Z does not want to feel sold to, which is why more brands are prioritizing educational content, influencer marketing, earned media, and building communities over large ad buys. This mobile-first mentality means businesses must stay up to date with the latest cashless and contactless payment options to create an ideal customer experience.

Gen Z favors mobile payment methods over cash — and even debit or credit cards — much more than previous generations. The convenience of touchless digital payments like Apple Pay and Google Pay is one big reason why, along with concerns around spreading germs using cash and cards.

Plus, they are more skeptical of traditional financial institutions and their products. That is why businesses need to stay ahead of new alternative financing options like BNPL.