Here Are The Top Findings From Amazon Payment Services' Research On Gen Z Attitudes Toward Digital Payments Merchants from the UAE, KSA, and Egypt can utilize the findings of this white paper to authentically connect with Gen Z (born 1997-2012) and deliver to their emerging needs.
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Amazon Payment Services has published a white paper that compares the spending preferences of Generation Z (born 1997-2012) with that of other generations, such as millennials (born 1981-1996), while also discussing the influence of Gen Z as their spending power grows.
Titled Understanding Generation Z, the white paper is based on research conducted by Sixth Factor Consulting, and sponsored by Amazon Payment Services, which surveyed over 1,800 respondents across the UAE, KSA, and Egypt.
"The Gen Z demographic has immense potential to drive future business growth for merchants, making it an important customer segment for businesses to secure," said Peter George, Managing Director for Amazon Payment Services in the MENA. "The analysis in this paper presents Gen Z's attitudes toward digital payments, covering also other relevant industry topics in MENA, and can be used by merchants to connect effectively with this audience, in order to drive healthy, and sustainable growth."
Here are the top findings from the research:
1. More than half of research respondents prefer paying digital Gen Z members prefer digital payment methods, with payment cards and mobile wallets being the most popular.
Those surveyed also said that they thought buy now, pay later (BNPL) options are a convenient way to pay for big-ticket items. Zero interest, lack of paperwork, and lightening the pressure on the pocket are the reasons driving interest for this payment method among Generation Z.
In all three countries, the vast majority of respondents were aware of peer-to-peer (P2P) transfer apps, with awareness as high as 92% in Egypt, driven by the early availability of the national instant payment network. The majority of respondents across UAE, KSA and Egypt claim to have conducted a P2P transfer using an app or another method at least once.
The research also found high awareness of in-app payments; however, respondents suggested that this method is competing with other commonly used payments methods, and that merchants should consider using discounts to steer more purchases toward mobile apps.
One category of in-app payment that was welcomed by respondents was super apps, which have been observed to be particularly convenient, leading to high awareness and take-up.
Peter George, Managing Director, Amazon Payment Services MENA. Source: Amazon Payment Services
2. Personalization over privacy The study finds that Gen Z are less concerned about data-sharing than previous generations, and they are willing to share their data if it provides them with a better shopping experience.
As per the report, one Gen Z survey respondent said, "I am aware cookies track down the websites I visit, and target advertisement towards me as per my taste and choice. [But] I get relevant content on what would interest me, making my online experience more personalized."
3. Underlying motivations driving behavior To successfully reach Gen Z, businesses must understand not only their quantifiable behaviors, but, more importantly, their underlying motivations.
As the first generation of digital natives, Gen Z have never known a world without smartphones and the internet, unlike the digital immigrants who preceded them.
This has exposed Gen Z to various global issues very early in life due to their behavior as heavy users of social media, embedding a deep sense of social responsibility, which shows up in their choice of brands and workplaces. To gain favor with Gen Z, businesses must understand their values and priorities and develop a matching corporate social responsibility strategy.
Gen Z is also one of the most entrepreneurial generations, especially in the Middle East. This entrepreneurial mindset is motivated by the underlying desire for financial independence.
As a result, offering loyalty programs and reward schemes that emphasize affordability, and showcasing financial planning as an attractor to newer payment methods will be beneficial for businesses targeting Gen Z.
Related: Five Things You Need To Know About Leading Generation Z
