According to research conducted by PYMNTS Intelligence, the youngest consumers are embracing digital wallet technology at a much higher rate compared to older generations. This might have direct implications to loyalty programs operators and solution providers.
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GLOAccording to research conducted by PYMNTS Intelligence, the youngest consumers are embracing digital wallet technology at a much higher rate compared to older generations. This might have direct implications to loyalty programs operators and solution providers.
Based on data from the report titled “How Preferred Payment Availability Can Reduce Cart Abandonment,” a collaboration between PYMNTS Intelligence and Adobe, which surveyed over 3,500 U.S. consumers, it was found that 8.8% of Generation Z online shoppers primarily used Apple Pay for digital purchases. This figure is more than double the 4% of millennials who did the same, and significantly higher than the 1.1% of Generation Z and 0.8% of baby boomers and seniors who adopted Apple Pay.
Interestingly, millennials surpass Generation Z in Google Pay adoption by almost threefold, demonstrating a preference for this digital wallet over other generations.
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The study underscores the importance of offering consumers their preferred payment methods in online shopping experiences. Drew Olson, senior director at Google Pay, emphasized in an interview with PYMNTS CEO Karen Webster that users expect a variety of payment options when making purchases, as evidenced by the over 1 billion daily transactions on Google. This demand for choice extends across various merchants and checkout processes.
Merchants have also observed this trend, with Tamara Jarrar, founder and CEO of direct-to-consumer (D2C) children’s sleepwear brand Bellabu Bear, noting that customers are quick to raise concerns if their preferred payment method is not available. Jarrar emphasized the importance of providing multiple payment platforms to facilitate transactions and enhance conversions on eCommerce sites.
