Compared to older generations, Millennials and Generation Z are digital-first generations and have grown up with technology. Amongst other things, this is reshaping the payments market.
In a recent blogpost by Currencycloud in collaboration with Bano, the company discussed how Gen Z and Millennials are reshaping the future of payments in APAC.
Currencycloud said, ?Millennials and Generation Z are digital-first generations; at ease with new technologies and the convenience they deliver. They are digital natives who have never known a world without social media, broadband and mobile phones. The two generations share a digital monoculture, with their lifestyle choices and attitudes frequently aligned.p>
These two generations are seen to live in a world where almost everything can be accomplished with a finger swipe on a smartphone. The area of payments is particularly relevant in this respect.
Depending on what particular nation they are in in Asia Pacific, many Millenial and Gen Z consumers embrace it in different ways. For example, Millennials and Generation Z based in the mature markets of Singapore, Hong Kong, South Korea and Australia have different expectations of payments than their counterparts in other APAC nations. When making payments, they lean towards e-wallets and cards instead of cash.
Furthermore, payment behaviours are different for Millennials and Generation Z living in the emerging markets of India, Indonesia, Thailand, Vietnam, Malaysia, Cambodia, Laos and China amongst others. Many of these populations are largely unbanked or underbanked, and with a strong culture of microlending in emerging markets, Millennials and Gen Zers are open to innovations in saving.
Currencycloud noted that there is one key area in payments where Gen Zers and Millenaisl differ and that is in the area of superapps. The region Millennials and Generation Z have grown up with an internet-first, digital-first environment: and because of this there nothing more natural to them than to make payments digitally – and their go-to place to do this are the superapps.
The company said, ?At the heart of every superapp are the payment processes. It is the digital wallets embedded in the superapps that empower MIllennials and Generation Z consumers to make these payments conveniently and seamlessly. Methods may be different, but the result is the same – payments. ?
Currencycloud concluded, ?With Millennials and Generation Z readily embracing innovations in payments, it no surprise that Fintechs are not only increasingly attuned to their needs, but are specifically created to appeal directly to them and match their expectations.p>
To read the full post, click here.
