The Generation Z consumer is joining the workforce with a potential of more purchasing power. They are the future fintech for ecommerce. Gen Z consumers will be most willing to try new payment technologies to bolster their newfound status. This is helping to propel the digital payments industry forward.
To capitalize on the fintech revolution that is developing, merchants must provide the best possible options for reaching these consumers by 2024. Otherwise, they risk being left behind as a younger generation of consumers decides to take their business to other places.
Network Merchants Inc., also known as NMI, provides payment gateways for merchants of all types and verticals.
Peter Galvin, NMI’s Chief Growth Officer, said that merchants should ensure they are able to offer the payment options Gen Z consumers want, including digital wallets, Buy Now, Pay Later Plans (BNPL), as well as new payment technologies such as digital Wallets.
Galvin, a spokesperson for the E-Commerce Times, said that businesses can support new payment methods more quickly by integrating embedded payments.
He added: “As Gen Zers spend more online and in stores, merchants need to offer different payment methods so they can accommodate the preferences of consumers.”
This may be intimidating, but integrating embedded payment allows merchants the opportunity to quickly implement new payment technologies. They can also show consumers that they are flexible and willing to accommodate their needs.
Why payment options matter
Payment integration and processing systems like NMI’s modular gateway platform allow merchants to customize their payment integration options to meet the needs of each customer.
Gen Z consumers, those born between 1997 and 2012. They are the adult consumers aged 18 to 26. Their buying habits and bank accounts differ fundamentally from older consumer groups.
Gen Z will remain loyal customers if e-commerce sellers continue to meet these needs and recognize the differences.
As a micro-generation of shoppers who follow the same Gen Z preferences, a less-recognized group called Zillennials (born between roughly 1993 and 1998) has emerged.
This includes the frustration of having to wait to hear back from someone via email or to make a simple phone call.
They must have a simple, quick and automated way to update an address, lock or unlock credit cards, or dispute a transaction.
“Many younger customers do not carry cash, or even physical debit or credit cards.” Galvin suggested that it was crucial for merchants accept mobile payment since consumers rarely leave their phones behind.
In general, payment is a crucial function to both brick-and -mortar and online stores. He said that payments are usually the most technologically advanced part of physical storefronts, and also the area in which younger consumers are most important.
Combining sector resources
Fintech is a term that refers to firms who use technology to disrupt traditional financial processes. Fintech is a key component in the growth and development of ecommerce.
Secure payment platforms and electronic wallets have revolutionized payment processes. They have allowed ecommerce to flourish worldwide.
Fintech enables e-commerce companies to offer services like advance payment and refunds to their customers, regardless of where they live. This technology allows digital products and services to be directly sold on the ecommerce market.
Examples of online banking, peer-to-peer payment, online ecommerce, and donating to crowdfunding platforms are all examples. Fintech applications for e-commerce include apps, software or technologies that allow people or businesses digitally manage their finances, make financial transactions, or access them.
Flexible Money Methods Required
The younger generation has not given up on in-store shopping despite the growth of online shopping and ecommerce. In both physical and online stores, it is important to have a complete set of modern tools for making purchases.
Galvin stated that digital wallets, biometric payment methods and other payment options are crucial for creating the best possible experience for young consumers. These electronic options will encourage them to buy more in store.
NMI’s latest data shows that 83% Gen Z consumers are eager to try out new payment methods. Merchants, independent software providers (ISVs), independent sales organizations (ISOs), and merchants must work together to create these payment experiences.
It is important that they work together so their payment systems are ready to handle the new payments era, whether it be in-store, online or via a mobile device,” Galvin stated.
He advised that offering younger consumers preferred payment options is crucial to building brand loyalty and keeping Gen Zers returning. “Gen Z is increasingly looking for alternative payment methods to credit cards. BNPL remains a popular option among many consumers until 2024.”
No Free Rides for Merchants
Galvin believes that it’s important for online merchants to offer the Buy Now Pay Later option, since two-thirds of consumers use this service at least half the time they shop online.
Providing several payment options — including at least one mobile choice — increases the chances for new sales from younger consumers. This is not free and is not easy to do for business owners.
Setting up multiple options for payment can be expensive and time consuming. The business may not be able to complete the process if it tries to do this on its own. This can leave them on a disadvantage with their competitors.
Galvin says that embedding payment into the software management stacks of merchants will allow them to easily adopt new payment technology. By embedding the payment system into their software management stacks merchants won’t have to leave native systems in order to accept payments.
This allows merchants to quickly and easily integrate new payment methods, such as digital wallets, into their platforms. This is crucial today, since young consumers are driving the online shopping trend, according to him.
“Gen Zers have a high standard for in-store payments and are willing to go elsewhere if the payment option they prefer is not available,” concluded he.
