As Generation X enters its 20s , retailers are urged to upgrade payment methods in line with generational shifts.
Millennials and Gen Z, also known as the “smartphone generation”, are expected to push retailers to offer more advanced methods of payment. Considered to be more dependent on technology than other generations, Gen Z’s and Millennials are continuously seeking ways to achieve greater effectiveness during their daily lives. This includes food, drink and clothes shopping – a consistent activity most encounter during early adulthood.
Global: “Which of the following are most influential when deciding where you do your grocery shopping? Stores supports advanced payment methods e.g. Apple Pay”, 2018
Source: GlobalData’s 2018 Q3 Global Consumer Survey
As illustrated above, younger cohorts are significantly more dependent on advanced payment methods, such as Apple Pay, compared to seniors who only account for a small proportion of global consumers.
According to GlobalData’s 2018 Q3 global consumer survey, 16% of Generation Z stated advanced payment methods was the most influential factor when grocery shopping, closely followed by millennials at 15% – both higher than the global average. In context, only 4% of the Silent Generation considers the same factor most influential.
These findings suggest that FMCG retail outlets, especially supermarkets and convenience stores, need to offer more advanced payment methods to accommodate younger generations.
These results underpin Sainsbury’s recent decision to trial checkout-free shopping in London. The new payment system allows customers to leave the store with their groceries without stopping at the checkout. The scan, pay and go technology lets shoppers pick up what they want and scan it as they go, before paying through Apple Pay.
This is the type of advanced payment method which retailers can introduce to best prepare for the next generation of shoppers. Doing so will allow key FMCG players to adapt to generational shifts and technological advancements simultaneously.