With every generation, consumer behaviors change. Gen Z (ages 18-24) and Zillennial (25-26) shoppers grew up online. Many don’t remember a time before the internet; their teenage and young adult lives have revolved around ecommerce and digital payment options.

Because young consumers are so reliant on the internet, their payment preferences are drastically different from older generations.

For instance, rather than going to a bank branch and opening a checking account in person, younger consumers prefer to do everything online. They want to download an app and manage their banking and spending from their smartphone.

As consumers return to brick-and-mortar stores to shop in person, merchants must be mindful of changing customer expectations. Younger generations don’t want to carry physical cards or cash. Instead, they want to shop around, find what they want and then use a digital wallet or app to pay.

The Importance of Payment Personalization

In our Payments Innovation Pulse Report, we found that half of consumers aged 18-24 (53%) and 25-40 (57%) and even 41- 56 (46%) use payment applications when shopping in-store.

As NMI Chief Product Officer Peter Galvin noted in a recent interview, “Right now, younger consumers prefer mobile and digital payments, and they expect these options to be available to them in almost all payment scenarios.”

Unfortunately, a reliance on technology can make it difficult for small- and medium-sized businesses to win customer loyalty - especially from younger shoppers. In an age of personalization, where social media platforms and ecommerce giants seem to know everything about your shopping preferences and tastes, consumers demand the same level of attention from the businesses they interact with daily.

McKinsey found that 71% of consumers expect companies to provide personalized experiences at every interaction, and 76% are frustrated when these expectations aren’t met. Young consumers insist that brands understand their shopping habits and offer payment options to match those preferences. Unfortunately, they are also willing to walk away from a sale if they can’t pay on their own terms.

“In today’s tough economy, every customer is critical, so businesses cannot afford to lose a sale,” Galvin said. “Implementing mobile and digital payments can help ensure that younger consumers always have a payment method available to them.”

To see Galvin's full interview and learn more about changing consumer payment trends, read the full article from eCommerce Times here.

Fill out the form below and we will get in touch with you shortly

Adopting the digital wallet with NMI CMO Peter Galvin
NMI Insights

Insights from NMI’s Peter Galvin

Digital wallets are some of the market's most prolific and widely adopted payment tools. Juniper Research estimates that 5.2 billion people wi... Learn More
What is friendly fraud and how can you prevent it
NMI Insights

What Is Friendly Fraud and How Can You Prevent It?

Friendly fraud – also known as chargeback fraud or first-party fraud – occurs when a buyer attempts to receive goods or services without payin... Learn More
What is automated merchant onboarding
NMI Insights

Top 5 Merchant Onboarding Challenges

Independent software vendors (ISVs) and independent sales organizations (ISOs) know the benefits of selling merchant services. It allows you t... Learn More
Will cryptocurrency be offered at the point of sale
NMI Insights

Will Cryptocurrency Find Its Way to the Point of Sale?

The crypto market has had a challenging two years.  In 2022, the value of several major cryptocurrencies plummeted. Then, in November, crypto... Learn More
Consumers are eager to try payments trends
NMI Insights

Consumers are Eager to Try Payment Innovation. Can Merchants Deliver?

The payments industry is rapidly changing, and consumer payments preferences are at the forefront of that transformation. Consumers are eager ... Learn More
Next Gen ISO
NMI Insights

Growing Your Business Through Untapped Markets

When was the last time you walked into a retail chain store or restaurant to offer merchant services only to walk right back out? Many mercha... Learn More
Navigating new payments regulations
NMI Insights

How Payment Providers Can Prepare for Increased Liability

New government regulations in Washington are slated to impact the regulatory environment within the payments industry. According to regulators... Learn More
The Impact of Surcharging Limits
NMI Insights

The Impact of Surcharging Limits

Adding a surcharge to credit card transactions has been commonplace for more than a decade; the practice was legalized across most states (wit... Learn More
Tap on Phone Offers Merchants a New Way to Accept Payments
NMI Insights

Tap on Phone Offers Merchants a New Way to Accept Payments

Payment acceptance can be tricky for merchants - especially those with small and medium-sized businesses. To accept payments, merchants must p... Learn More
How a Payments-Centric CRM Maximizes ISO Efficiency
NMI Insights

How a Payments-Centric CRM Maximizes ISO Efficiency

The payments industry is competitive. An ever-growing number of independent sales organizations (ISOs) are vying for merchant sales. For your ... Learn More