Gen Z Hands Merchants a Checkout Ultimatum
A merchant can spend to get a Gen Z shopper through the digital door, persuade them to choose a product, and still lose the customer over the payment methods displayed at checkout. Twenty-eight percent of Gen Z shoppers abandoned or would have abandoned an online cart in the previous month because digital wallets weren’t accepted, […] The post Gen Z Hands Merchants a Checkout Ultimatum appeared…
Gen Z shoppers are exerting pressure on merchants with an ultimatum regarding payment methods at checkout, according to a new report. A PYMNTS Intelligence study, in partnership with PayPal, found that 28% of Gen Z consumers abandoned or would have abandoned an online cart in the previous month due to a lack of digital wallet acceptance.
This rate is significantly higher than for other generations, with millennials at 18%, Gen X at 10%, and baby boomers and seniors at 3.9%. The report highlights that payment acceptance extends beyond the mechanics of completing a transaction for merchants targeting younger consumers. Wallet use among Gen Z is already widespread, with 47% using a digital wallet for online purchases in the previous month.
When acceptance fails, nearly half of these consumers would switch merchants or abandon the purchase altogether. The impact on merchants is significant, as the generational difference in payment acceptance can affect customer acquisition and retention. With 87 million U.S. consumers using digital wallets online and another 77 million in stores, the issue is widespread.
Merchants must now consider payment options at checkout as part of the customer acquisition and retention strategy.
Written by urgent.news from PYMNTS's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
