To satisfy Gen Z, banking providers must make payments ‘seamless’
Gen Z consumers, and Millennials too, expect the buying experience to be fast and efficient. Financial institutions and the merchants they support need to rethink their approach to the payment process so consumers are the first touchpoint in the value chain, not the last. Otherwise new options like Facebook's Libra and other global initiatives will gain traction.
The payments landscape looks far different than it did even five years ago, and it will likely undergo even more rapid changes in the next five. The announcement by Facebook of its new cryptocurrency, Libra, is just one example. We are moving further into the digital age where a large portion of consumers will be from Gen Z, those born after 1996. This group will make up 40% of all U.S. consumers by 2020 and it shops far differently than previous demographics.
Born into the digital age and experiencing the rise of the gig economy and on-demand retail, Gen Z consumers seek instant and seamless online shopping experiences. They have grown up in the digital revolution and because of this, demand superior experiences through technology as it’s all they have ever known.
Financial institutions and the payments industry overall need to follow the lead of other sectors to innovate solutions that meets the needs of the changing consumer base. The rise of direct-to-consumer brands that cut out third-party middlemen is a great example. Uber is the poster child for this trend. Payments must look to chart a similar path.
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