Page 30 - gs250601

Insi ChapterTitleExpertise
and
hts
g
What Gen Alpha How each cohort approaches spending
Generational shoppers:

expects from the As Generation Alpha begins to shape the future of

commerce, understanding the distinct shopping
future of payments behaviors of each generation becomes crucial. Here's
a comparative overview of the spending habits and
By Azimkhon Askarov expectations across Baby Boomers, Gen X, Millennials,
Gen Z, and Gen Alpha.
Concryt • Baby Boomers (born 1946–1964) – value and ex-
perience seekers: Baby Boomers, holding signifi-
teenager today might buy an in-game upgrade, cant wealth, prioritize value and quality in their
send money to a friend on a peer-to-peer app purchases. They are known for impulsive travel
and complete a livestream checkout, all before spending, often booking vacations spontaneously,
A they've even opened a bank account. These yet remain thrifty, seeking deals and loyalty pro-
early behaviors offer a preview of what's coming as Gen grams. Health and wellness are paramount; over a
Alpha becomes the next wave of financially active con- fifth own smartwatches primarily for fitness track-
sumers. While many in the payments industry are still ing. While traditionally favoring in-store shop-
busy adapting to Gen Z, Gen Alpha is already forming ping, Boomers are increasingly embracing online
habits that could leapfrog the current infrastructure. This purchases, especially for subscriptions and digital
cohort will arrive with expectations, not requests, and services .voguebusiness.com+3gwi.com+3forbes.com+3
that means payment providers must look further ahead.
• Generation X (born 1965–1980) – pragmatic shop-
Gen Alpha —those born from 2010 onward—is the first pers: Gen Xers, balancing careers and families, ex-
generation raised entirely in a digital-first environment. hibit calculated shopping behaviors. They value
They're fluent in apps, automation and instant responses, product quality and are willing to spend more
and they carry those expectations into everything, includ- for worthwhile products. Approximately 43 per-
ing how they pay. Their habits will soon redefine not only cent regularly shop online, favoring categories like
payment preferences, but the architecture and responsive- clothing, electronics and beauty products. How-
ness of the entire payments ecosystem. ever, 73 percent still prefer in-store purchases, es-
pecially for groceries and pharmaceuticals. Brand
Meeting expectations before they become demands loyalty is strong, with many influenced by tradi-
tional advertising channels like TV and search en-
Gen Alpha won't ask for convenience; they'll assume it. gines. salsify.comjillamy.comgwi.com
They're used to interactions that are fast, responsive and
embedded in the platforms they already use. If a checkout • Millennials (born 1981–1996) – digital natives
experience takes too long or feels out of place, they won't with a conscience: Millennials, the largest gen-
hesitate to abandon it. eration in the United States, prioritize experiences
over possessions. Over 60 percent prefer online
For providers, this means anticipating behavior before it shopping, with a growing reliance on mobile apps
becomes entrenched. It's no longer enough to retrofit sys- and social media platforms for purchases. They
tems around new user habits, the focus must shift toward are comfortable with subscription services and
infrastructure that flexes and scales with them. The earlier often research products online before buying. Sus-
those foundations are laid; the better positioned payment tainability and social responsibility significantly
companies will be as Gen Alpha matures. influence their purchasing decisions, with many
favoring brands that align with their values. gwi.
Mobile-first is now a requirement comkhoros.com

Cards may remain relevant for some time, but Gen Alpha • Generation Z (born 1997–2009) – omnichannel
is gravitating toward mobile wallets, tap-to-pay and pay- enthusiasts: Gen Z seamlessly integrates online
ment experiences built directly into apps and platforms. and offline shopping experiences. They are heavily
They won't tolerate friction when paying on mobile, be- influenced by social media, with 58 percent having
cause they've never had to. purchased something they saw on these platforms.
While they value sustainability, there's a noted dis-
That means providers must support clean mobile check- crepancy between their eco-conscious intentions
outs, strong wallet integrations and responsive design and actual purchasing behaviors, often opting for
across devices. It also means investing in the technical fast fashion due to affordability. Personalization,
backbone that makes real-time authorization, tokeniza- authenticity, and ethical practices are key factors in
tion and authentication work without delay. Mobile-first their brand loyalty. theaustralian.com.au+6nielseniq.
optimization should also extend to merchant onboard- com+6voguebusiness.com+6explodingtopics.comnypost.
ing and reporting tools. If younger entrepreneurs, many com

30