Gen Z Consumers Embrace Alternative Financial Solutions
Consumer Insights Research Team
Nov 26, 2019
51% of Gen Z consumers say they would use a new digital currency from a brand they trust—, especially tech companies. Their openness to alternative currencies is just one example of how young adults are embracing new financial tools and providers. Another is that they view app-based money transfer platforms like PayPal and Venmo as equal in importance to bank accounts when it comes to managing their finances. Marketers be warned: this is not a “phase” Gen Z is likely to age out of. If anything, the financial habits young consumers establish now could become hard-wired preferences as more Gen Z consumers enter the workforce and have more money to spend.
Though less enthusiastic, all other consumers (Millennials and older) are also open to financial alternatives. 60% of older consumers say they want more personal control over how they move their money, leaving less control in the hands of governments and traditional financial institutions (73% of Gen Z feel the same). Older users also use digital payment platforms, especially people with self-declared financial confidence, and with higher incomes.
B2C marketers across a range of industries need to be aware of changing consumer perception and understanding of value. Don’t assume today’s customer has the same attitudes as they had in the past about money, the form it should take and who to trust with it. Convenience, speed, and personal control rank high on the list of modern-day priorities, opening the door for brands as diverse as Facebook and Amazon to step in with new financial alternatives. Consumer perception of the modern digital finance landscape isn’t limited to traditional currencies. As new forms of value storage and exchange—like cryptocurrencies, digital tokens, mobile wallets and even loyalty points from companies as diverse as airlines and retailers—become a burgeoning area for payment innovation, marketers must adapt.