22 November 2024, Fri |
11:49 PM
Amazon Payment Services, a prominent digital payments provider in the Middle East and North Africa (MENA) region, has released research shedding light on the spending preferences of Generation Z (Gen Z), the demographic born between 1997 and 2012. The white paper titled “Understanding Generation Z” compares Gen Z’s payment preferences with other generations, such as millennials, and highlights the growing influence of Gen Z as their spending power continues to rise. Sponsored by Amazon Payment Services and conducted by Sixth Factor Consulting, the research findings are shared in the second white paper published on the ‘re:Imagine Payments’ thought leadership forum, providing valuable insights for merchants and digital payment enthusiasts.
Peter George, Managing Director for Amazon Payment Services in the MENA region, emphasizes the immense potential of the Gen Z demographic to drive future business growth. Recognizing the importance of securing this customer segment, the white paper’s analysis offers valuable insights into Gen Z’s attitudes towards digital payments, along with other relevant industry topics in the MENA region. Merchants can leverage these insights to effectively connect with Gen Z, driving healthy and sustainable growth.
Digital Payments Prevail: The research reveals that more than half of the respondents from Gen Z prefer digital payment methods. Payment cards and mobile wallets emerged as the most popular choices among this tech-savvy demographic. Gen Z members also exhibit a strong interest in Buy Now, Pay Later (BNPL) options, driven by the convenience, lack of paperwork, and affordability associated with these payment methods for big-ticket items.
P2P Transfer Apps and In-App Payments: The majority of respondents across the UAE, KSA, and Egypt are aware of peer-to-peer (P2P) transfer apps, with Egypt boasting an impressive 92% awareness rate, fueled by the early availability of the national Instant Payment Network. In-app payments also garnered high awareness, although respondents indicated competition with other commonly used payment methods. Merchants are advised to consider offering discounts to incentivize more purchases through mobile apps. Respondents expressed particular enthusiasm for super apps, currently available in AE, citing their convenience and leading to high awareness and adoption.
Personalization versus Privacy: Gen Z prioritizes personalization over privacy concerns. The research shows that this generation is less apprehensive about data-sharing compared to previous generations, as long as it enhances their shopping experience. Gen Z appreciates targeted advertisements and relevant content that cater to their interests, considering it a valuable aspect of personalized online experiences. In contrast, millennials expressed more caution about data-sharing and were more reluctant to disclose personal information.
To successfully connect with Gen Z, businesses must grasp not only their observable behaviors but also their underlying motivations. As the first generation of digital natives, Gen Z’s early exposure to smartphones and the internet has made them highly aware of global issues through their heavy use of social media. This has ingrained a deep sense of social responsibility, influencing their brand and workplace preferences. Businesses seeking to resonate with Gen Z must understand their values and priorities, aligning with them through corporate social responsibility strategies. Furthermore, Gen Z displays a strong entrepreneurial mindset, especially in the Middle East, driven by a desire for financial independence. Tailoring loyalty programs, reward schemes emphasizing affordability, and showcasing financial planning as a means to achieve their aspirations can significantly appeal to this entrepreneurial generation.
Amazon Payment Services’ research on Gen Z’s attitudes towards digital payments provides invaluable insights for merchants and stakeholders in the MENA region. Understanding Gen Z’s preferences and motivations is crucial for businesses to authentically connect with this unique and dynamic generation. By embracing personalization, leveraging digital payment methods, and aligning with Gen Z’s values, businesses can position themselves to tap into the immense growth and innovation potential presented by Gen Z’s rising spending power.
