How Gen Z Are Forcing Change To Decades-old Business Practices

Gen Z or Zoomers (consumers aged between 16 and 24) the demographic who never knew life without the internet and smartphones, currently represents the largest population group on earth. Members of this age group account for almost 2.5 billion people, surpassing Millennials in 2019. So says a report out today from payments platform Thunes.

“Failure to recognise the imminent influence of the digitally native Zoomer could result in a once perfectly shoppable brand witnessing slipping sales”

Peter De Caluwe, CEO Thunes

To shed some light on Zoomers, the global payments platform Thunes conducted a world-wide study into their shopping, social, and payment preferences. They interviewed 6,500 people between the ages of 16 and 24 from 13 developed and emerging countries around the world. And every brand and retailer should take notice of the findings.

They found that:

  • Social Media: Gen Z is influenced by social media more than any other generation. 8 out of 10 said they use social media on multiple occasions throughout the day. Three-quarters of Zoomers also check in multiple times each day in emerging markets, with two-thirds stating that they have purchased products they first discovered online. Not only is social media where Gen Z spend their money but increasingly where they are making it too, with a growing range of content monetisation options offered by TikTok, YouTube, Patreon, Clubhouse, and Twitch.
  • Mobile Wallets and Money Management: Gen Z has little enthusiasm for traditional financial products — be it bank accounts or credit cards. 62% of Gen Z’s don’t have any bank account at all. Mobile wallets are however growing rapidly and in some emerging markets, almost 50% of Zoomers now use this type of account.
  • Shopping: Zoomers spend a slightly larger proportion (19%) of their money online shopping than they do on socialising, eating out, and entertainment — this is the case in developed and emerging markets.
  • Cash Is Down, But Not Out: About a quarter of Zoomers in western markets almost never use cash. Physical currency remains important in offline spend in emerging markets, but its influence is in decline. This is not surprising given the choice and accessibility of digital tools.
  • Focus on Brand and UX: One of the most important drivers for Zoomers considering purchase and payment methods is brand trust — it became the #1 factor for choosing a primary payment method in 7 countries. This is the case in Western and emerging markets. User experience was identified as the second most popular factor, which, in an online world, affects loyalty too.

Thunes CEO Peter De Caluwe said: “To many, Gen Z is a misunderstood and overlooked generation. This is a generation to which “dial-up” and “desktop” are meaningless words and who don’t just think “mobile-first”, but live and breathe in apps, social media, digital platforms and soon — the metaverse. We should start to take this generation seriously as the revenues and strategic plans of many businesses — especially those that are relying on fast growth — are dependent on them”.

“We knew that social media would be a key part of a Zoomer’s daily life, but what our survey helped to reveal is the extent to which they are driving spending activity in this demographic” he added.

The report suggests that as the world moves online, social media, content and entertainment platforms, payment providers, and consumer brands looking to capitalise on Zoomers and their online spending habits must consider all the factors above. It goes on to say that Gen Z will be influenced first, not by price or even range or scarcity, but by their social circles, brand engagement online, and trendy, convenient, trustworthy payment options.

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