Gen Z shoppers see contactless as “must have”
Written by Hannah McGrath
65 per cent of Generation-Z shoppers say contactless payment is a “must have” at the checkout, as a third of consumers under 35 predict that merchants will become 100 per cent cashless in the next five years.
A survey of 350 retailers and 1,350 consumers by Hanover Research for Ingenico and FreedomPay also found that more than half of shoppers have experienced a technical issue at checkout at some point, demonstrating a disconnect between merchants’ efforts and the shopper’s actual experience.
As the decline of cash continues apace, the research shows that consumers are increasingly comfortable with using contactless payments, with 72 per cent saying it is easy to learn how to use and 74 per cent saying it is convenient.
A total of 84 per cent of businesses now accept debit or credit card contactless payments, but only 37 per cent of consumers are aware of the option, highlighting the need for firms to offer contactless as a prominent payment option.
However, while consumers in all age groups seek the convenience of contactless and digital payments, privacy remains a key issue, with 87 per cent of consumers and merchants identifying security as the top attribute when choosing a payment method.
However, younger consumers classed as “digital natives” use credit or debit cards because they like that it enables them to track their purchases via apps and financial management tools.
Mark Bunney, director of go-to-market strategy, Ingenico Group for North America said: “Even as shoppers are becoming savvier with technology today, the majority don’t necessarily know what to expect when they arrive at checkout because it’s not the same experience everywhere they go.
He added: “Retailers are battling a series of information gaps with their consumers, as they try to offer them the latest capabilities for contactless cards and mobile wallets while also correcting the perceptions they’re developing about security and ease-of-use for these technologies.”