When choosing the means of payment, good spending control is particularly important to young German consumers. On the other hand, they are less afraid of fraud. These are the results of the current international study “Lost in Transaction” on current purchasing behavior, which was carried out by Paysafe, a leading specialized payment platform.
Even during the pandemic, younger customers in particular changed their payment and purchasing behavior particularly strongly, and that although they do not belong to the particularly endangered group: Only 17% of 18-24-year-old Germans shopped in stores and paid cash in the spring . In contrast, this was 31% for customers of all age groups. And even in the long term, only a good quarter (27%) of 18-24 year olds plan to go shopping in stores as often as before the pandemic. With customers of all age groups, on the other hand, 39% would like to shop again to the same extent on site. This shows that younger consumers in particular have changed their purchasing behavior during the pandemic, so that the retail sector in particular has to win back Generation Z with high purchasing power.
Special payment preferences of Generation Z: fewer digital wallets, more prepaid
Young consumers also prove to be particularly flexible with their new payment preferences – and there are clear differences here too: Only 38% of 18-24-year-old Germans used digital wallets in the month of the survey (44% in all age groups). On the other hand, prepaid and eCash solutions are particularly popular with younger people: Almost a third (31%) of 18-24 year-olds would also like to pay online in cash if that were possible without any problems. Accordingly, 17% of 18-24 year olds used prepaid solutions in just one month, and 18% used eCash – each slightly more than in all age groups.
And what are the reasons for these different payment preferences? After a year of pandemic and economic uncertainties, spending control plays the biggest role in the choice of means of payment, especially for younger consumers: 27% of 18-24-year-old Germans state that they choose means of payment with which such an expenditure control is possible . With prepaid solutions – as the name suggests – a pre-determined amount is booked. With such payment methods you don’t have to share any sensitive bank or credit card data, and the use of a code makes prepaid solutions very secure.
Buying behavior of young Germans: Less fear of online fraud
However, security aspects are not as important to the younger generation as other consumers: While it is very important for over a third (35%) of all German consumers that their bank details are well protected against fraud when choosing a means of payment, this is the case only 17% of 18-24 year olds attend.
Udo Müller, CEO paysafecard, says: “In one year of the pandemic, we all changed our payment and purchasing behavior. However, Generation Z reacted most flexibly here, as the current study commissioned by Paysafe shows. Young customers have mostly weaned themselves off from shopping locally and instead shop online and pay differently. Prepaid and eCash solutions are particularly popular with young customers, because issuing control is very important to them. Prepaid and eCash solutions are also very secure as buyers do not have to share any bank details. Retailers and providers of other services – be it on site or online – should therefore offer a variety of payment methods in order to win over the affluent Generation Z in particular. ”
About the study
The study “Lost in transaction: The impact of COVID-19 on consumer payment trends” was commissioned by Paysafe and carried out by Sapio Research. In March and April 2021, over 8,000 consumers in Germany, Austria, Great Britain, Italy, the USA, Canada and Bulgaria were asked about their current shopping and payment behavior, among other things.
Also read: Consumer behavior after Corona – 6 predictions about convenience, online time and local purchases.