Gen-Z is hot on the heels of Millennials when it comes to being the biggest consumer group. This means that online businesses must understand the differences between these two groups, and their preferences when it comes to an online transaction experience.
These age groups are the two consumer groups that most predominantly grew up with the internet. Millennials describe people born between 1981 and 1996 while Gen-Z typically refers to those born from 1996 to 2010.
Millennials were the first to embrace online shopping, digital transactions, and communication as it first emerged whereas Gen-Z are more likely to have grown up with it always being an option.
The shift from land-based retail to online transactions has increased as mobile technology has improved. The proliferation of mobile device use in the U.S. coupled with greater connectivity means people can carry out the vast majority of their banking, betting, and shopping from the comfort of their own homes or on the move.
The growth of giants like Amazon has transformed how we shop, and consumers can even expect same-day delivery in some cases. This has created a consumer that demands speed, quality, and convenience.
The betting industry is another that has warmly embraced the online habits of millennials and Gen-Z, providing American bettors with licensed, offshore, and crypto betting sites that can be accessed through dedicated websites and apps.
Betting expert Kane Pepi points out that the best no-KYC casinos allow users to sign up, deposit, and withdraw funds much more quickly than alternatives, a big benefit for Gen-Z.
Both millennials and Gen-Z expect online payments to be carried out seamlessly. Gen-Z consumers are more likely to abandon a transaction if something goes wrong on the operator’s side or if they are required to sign up to the site.
Long-drawn-out sign-up processes where consumers have to go back and forth with confirmation codes or, in the case of online gambling, documents proving their identity.
Payment methods can also impact a consumer’s decision on whether to use a site or not. 65% of Gen-Z consumers are likely to abandon a transaction if they get to a checkout and their favorite payment method is not available. Even more, millennials will leave a site according to research carried out by Ecommpay with 78.7% saying they are very likely to cancel the transaction.
Online payment systems like PayPal, Google Pay, and Apple Pay have helped online operators streamline processes by offering ‘quick pay’ options. These take a customer straight through to the payment platform where they can confirm a transaction with one click and their preferred delivery details will be automatically populated.
Many sites are also exploring cryptocurrencies with younger consumers shown to be as much as four times more likely to invest in crypto than older generations.
Financial institutions, the gaming industry, and crypto-gambling sites are some examples of industries that have adopted this alternative to fiat currencies. Crypto transactions can be carried out quickly with lower transaction fees and are ideal for international payments.
Other payment options including Buy Now Pay Later models are used by millennials and Gen-Z which allows users to pay back in installments. Some operators and online catalogue-style stores have their own finance agreements in place. In other cases, external sites can be used to make staggered payments with PayPal offering an interest-free Pay in 3 service that allows its customers to pay in installments on sites that don’t offer it.
Providing modern consumers with a variety of payment methods should be a priority for all businesses switching to online operations. Evidence shows that failing to do this will see customers look elsewhere. Online shopping facilitates this by allowing consumers to carry out searches for competitors easily.
