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Convenience, versatility, and security. These are the digital-age shopping essentials — especially for the coveted Millennial and Gen Z markets who were born into the internet era.
Many of today’s youngest shoppers grew up taking full advantage of low effort purchases that were never more than a click or two away. And Gen Z and Millennials aren’t just customers — they’ll help spread the word about a business, too, as they’re often the first to try new products and advocate for solutions they love.
These key demographics bring cash to the table. In 2023, the mean disposable income for Millennial-led households was $97,866.1 And Gen Z’s average hourly earnings rose 11.9% year over year in May of 2023, as compared to the national average of 6.3%2, with 46% of Gen Z saying that they felt wealthy.3
Modern companies need payment options that keep these shoppers enticed. Prioritizing payment choice and flexibility can help you win the loyalty of younger demographics and increase checkout conversion rate.
Digital payment options are valuable lifestyle extensions for Gen Z and Millennial shoppers. They use these solutions for everything from splitting bills with friends to paying for subscriptions. Some of their must-haves include:
Streamlined, intuitive payment experiences cater to the shopping habits and payment preferences of these demographics, fitting naturally into the way they live. Here are some key suggestions to keep in mind.
Digital wallets are increasingly essential payment options for all online shoppers. But 61% of Millennial shoppers and 60% of Gen Z use them weekly, in comparison to 38% of the general population.4
Gen Z and Millennial shoppers appreciate choices. Prioritize payment methods like QR codes and BNPL to offer young shoppers the flexibility they’re looking for when it’s time to pay up.
More than half of surveyed Millennial (57%) and Gen Z (56%) shoppers said they’d failed to complete a purchase because their ideal payment method wasn’t an option during checkout.5 Lower the risk of abandoned purchases and optimize online checkout with flexible, multi-function payment apps.
Understanding what makes Gen Z and Millennials tick and playing on their terms is key to a winning payment strategy that helps lock in their valuable business.
PayPal can help you reach them where they are, offering a wealth of convenient, secure options that keep payments as they should be — simple, easy, and approachable.
Download our comprehensive report for more on how to attract this valuable audience.
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