"Its important for brands to build a compelling, credible, and strong presence across all available channels"
Koen Vanpraet, CEO of PXP Financial
Offering alternative and digital payments are the key for retailers wanting to attract younger cohort of shoppers, with 74% of Generation Z put off by cash-only stores. That’s according to the latest research from PXP Financial.
Unsurprisingly, the research found that debit cards are the most popular payment method, with mobile wallets and cash a joint second. So, while cash is still popular, cashless methods are more favoured, particularly digital ones. Interestingly, the preference of these payment methods entirely relies on convenience; only 9% of Gen Zers consider security the main benefit of cashless payment methods.
The global experts in end-to-end payment solutions surveyed more than 160 members of 18-25 year-olds in the UK on their experience and preferences when shopping, and, in particular, making payments. In a world where the UK high street is facing an uphill struggle in the face of soaring rents, business rates and staffing costs, the insights are crucial.
The majority of consumers have ditched the high street in favour of online shopping, but 67% of Generation Z prefer to shop in a physical store most of the time. The research revealed that this is because shoppers favour in-store purchases because they can are able to try items before they buy them (73%), and then make an immediate purchase.
Failing to offer alternative payment methods means that Gen Zers won’t be able to pay the way they want to, but retailers need to offer more; they must create an experience to attract them. More than two thirds of respondents (69%) said they would shop in a store where payment is taken from their mobile as they leave.
Koen Vanpraet, CEO of PXP Financial, commented: “Shoppers have been rapidly rejecting the high street in favour of online shopping but it’s clear that Generation Z are creating a retail renaissance. They prefer bricks-and-mortar shops because they get instant gratification, but they also enjoy the experience that comes with visiting a shop and making a purchase.
“It’s important, therefore, for brands to build a compelling, credible, and strong presence across all available channels, and work hard to bridge the gap between the online and instore experience. Do this and the returns could be huge.”
For more information, or to download PXP Financial’s whitepaper, Are Payments the Key to Maximising Gen Z Appeal for the High Street, visit: https://info.pxpfinancial.com/are-payments-the-key-for-maximising-gen-z-appeal-for-the-high-street