Gen Z 'naturally more comfortable' with PayTech, Paysafe

Generation Z consumers in the UK are much more likely than other generations to embrace a wider range of alternative payment methods, according to research by Paysafe.

The company surveyed 6,197 consumers from the US, UK, Canada, Germany, Austria and Bulgaria. 50% of Gen Z had some experience of in-app payments, and 18% made them regularly - significantly higher than all other consumers (24% and 8%). 50% have used a mobile wallet (versus 30% of other consumers) and 25% (versus 11%) regularly make payments with one. Additionally, 22% regularly or occasionally use prepaid pins and 36% have made online purchases using a cash-based system (versus 7% and 20% of all other consumers).

The research also revealed that 48% of Gen Z buy goods on their mobile more often than any other platform. In contrast, 35% of Generation X (40-54-year-olds) and 6% of Baby Boomers (over 55-year-olds) prefer mobile shopping.

In terms of in-store payments, 16 to 24-year-olds enjoy having additional options, with 63% preferring to shop in stores that accept contactless payments. Physical cash is also still used by most (66%) Gen Z consumers.

Gen Z is also open to using voice-activated payments. 55% would use voice technology to sign up for a subscription service such as Netflix or make a one-off entertainment purchase (54%), and 47% would be prepared to pay for groceries using voice commands to their smart fridge.

They are also increasingly interested in cryptocurrencies. 36% can see themselves using Bitcoin et al to make purchases in the next two years if they knew more about it, or have already used it. 45% also believe that using cryptocurrencies would be an effective way to combat card fraud, more than the average consumer.

Philip McHugh, CEO of Paysafe Group, comments: “This generation is naturally more comfortable with technology but has also been exposed to a much broader set of ways to pay. Accepting new payment types and expecting lots of flexibility and ease will be table stakes going forward.”