Gen Z are leading the payments revolution. Time you joined in?

The trajectory of payments has changed dramatically in the last decade. And Gen Z has been instrumental in deciding where payments should go next.

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It’s not surprising. Gen Z are the epitome of the digital native, expertly navigating the online world from the minute they could hold any kind of communication device. Businesses should be in no doubt that even the youngest of this generation (currently just 11 years old) are having an impact on the world of payments.

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That’s good. Because young people should be spearheading change in the world, particularly when it comes to something as fundamental to everyday life as payments.

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Revolution and revelation

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Are Payments are fundamental to everyday life?

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Absolutely. For this digital or nothing generation, digital payments are how they open up real-life possibilities. From shopping to gaming, supporting charities, getting paid for work and paying back friends, Gen Z are constantly creating opportunities and shaping payments to fulfil them.

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And because payments have been quick to adapt to these new landscapes, businesses are able to keep up by adopting a unified commerce approach.

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Take social media platforms for instance. They went from being places to connect with friends to being shopping destinations, where engaging with brands and shoppers-turned-influencers is a daily ritual and just another way to buy things.

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Consider also Web3.0 where cryptocurrencies and digital tokens will be key for payments. Remember those intrepid 11-year-olds? They’re already shaping the world and when – not if – they want to pay for things in the metaverse businesses will need to be ready to meet them there.

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This generation does not distinguish between different channels. Instagram or in-store, they expect seamless payment experiences on any platform, via any device, and in any location.

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Gen Z also expect to be recognized. They want their preferences remembered and their loyalty rewarded. The payment moment has become so much more than just closing a sale, so personalization is key.

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Which brings me to the subject of revelation.

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This is a generation that has always been comfortable sharing of itself, their lives playing out across multiple social media platforms in real time every day. They’re happy to part with personal data – but they want a fair return for it as they’re fully switched on to the power of value-exchange. And they’re experts at squeezing every drop out of it.

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With their hyper-personalized approach to everything from gaming to shopping, entertainment and education, Gen Z are defining the way all generations use payments.

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This is great news for businesses.

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Innovations like buy now pay later (BNPL), instalment options, buy online pick up in store (BOPIS), app-based loyalty programs [KO1]?, and rewarding subscription programs (eg: Web3 Loyalty Engagement) have all been made possible by the willingness of people to share their data via payments. Savvy businesses should then collate, analyze and morph that data into rewarding payment moments.

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So how can your business be more Z

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Don’t be overwhelmed. Yes, it might feel like things are changing faster than you can say ‘tap to buy’ but you need to view this as a wonderful opportunity.

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Here’s a checklist for you:

1.?????? Unified commerce – can you meet your customers where, when, and how they want to shop?

2.?????? Personalization – are you using tokenization to collect, store, and recall customers’ data?

3.?????? Innovation – can your payments partner support the rapid changes this generation demands?

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If yes, congratulations – you are Gen Z enabled. If not, then let’s talk.?

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American spelling = programs?[KO1]