Marketing

Why young Germans are still attached to cash – eCommerce magazine

How does the German generation Z prefer to pay, how does it like to shop – and how has this changed during the current corona situation? A current study on Buying behavior generation Z from Paysafe shows that young Germans are surprising strong on cash hang: A large majority of 18 to 24 year olds would be concerned if they could no longer access cash.

Generation Z buying behavior: preference for online shopping

Young customers therefore also like to pay in cash online, with e-cash and prepaid solutions. Generally, the Preference for online shopping increased particularly strongly among young customers during the Corona pandemic. Also surprising: Almost all 18- to 24-year-olds have at least one online subscription – but often forget to cancel it in good time.

These are the results of an international study by Paysafe, a specialized payment platform that examined the effects of the corona pandemic on shopping and payment behavior. Around 8,000 consumers in Germany, Austria, Italy, Great Britain, the USA, Canada and Bulgaria were surveyed for the study.

Cash is still very popular

Generation Z is particularly tech and online savvy. Nevertheless, their preference for cash is surprisingly strong: 61 percent of 18- to 24-year-old Germans would be concerned if they could no longer access cash. In all age groups, this is even 70 percent. Despite the strong cash affinity for young customers Interest in alternative payment methods is currently also very high in Corona times: 83 percent of 18- to 24-year-olds used various options for contactless payment in the previous month, for example by card or smartphone.

When it comes to online offers, young customers also value alternative payment methods very much – and interestingly, cash also plays a major role here: 59 percent of the German Generation Z would like to pay for products online in cash if this were simply possible. This is indicated by 36 percent among all age groups. And some young Germans are already using this option in a very concrete way: In the group of 18- to 24-year-olds in the previous month, among other payment options, they used eleven percent e-cash and 17 percent prepaid solutions for online payments.

Young Germans shop online more often than other age groups

Corona and the occasional contact restrictions have reinforced the already strong trend towards online shopping for Generation Z: 48 percent of 18 to 24 year olds have a significant impact on the current Corona situation bought more online, and almost as many want to keep this habit: 46 percent of the age group states that they will continue to shop online next year, even if Corona should no longer play a role.

Among all age groups, this is only 27 percent of the respondents. However, the fear of fraud and security concerns also plays a major role among young customers: Half of the 18-24 year old Germans (50 percent) would prefer to pay with online prepaid cards so that they do not have to share their account details .

Almost all young users have a subscription – but often forget to cancel

During the exit restrictions, many people did more activities at home, including entertainment. Nevertheless, it is surprising that especially in the young age group, in which some do not yet earn their own money, almost all of them already have their own subscriptions – and more often than the older generation: 89 percent of 18 to 24 year olds have at least one subscription, for entertainment services such as Netflix or Spotify. This is only 69 percent among all age groups. At the same time, 49 percent of young subscribers state that they have already forgotten to cancel a subscription and have continued to pay, even though they no longer use it.

Generation Z buying behavior: Security is important

“The current situation with Corona brings with it many changes – also for the young generation. This is particularly evident in the current shopping and payment behavior of generation Z: Cash is very popular with young Germans – at the same time they are very interested in alternative payment options such as e-cash solutions. Young customers in Germany in particular are increasingly turning to online shopping, as our study shows, ”says Udo Müller, CEO of paysafecard.

paysafecard müller
Udo Müller is CEO of paysafecard. (Image: Felix Hohagen)

“Security is particularly important to them: they don’t want to share their account or credit card details when shopping online, which is made possible by an e-cash solution. Some in this age group do not yet have their own credit card or perhaps do not yet have an account. And the option of cost control with e-cash, such as prepaid solutions, is also ideal for young people. For these reasons, online retailers and entertainment providers can use e-cash to meet the needs of their young customers, ”Müller continues.

Also read: Buying behavior in the Corona crisis: 3 important trends for retail