Gen Z's love of digital payment is dictating the consumer way

Generation Z, which is generally considered to be those born between 1997 and 2012, has a low tolerance for obstacles.

- By Kara le Roux

The moment a checkout process starts to drag with a form to fill in or a password to remember, their patience runs out and their shopping cart is abandoned.

According to the World Wide Worx Online Retail in South Africa report for 2024, online shopping is the most prevalent among 25to 34-year-olds, closely followed by the 15 to 24 age group. The future trends of payment offerings seem to be dictated by the younger generation and, by 2030, the youth will be the greatest spending force across sub-Saharan Africa.

The leather wallet your dad carries and your mom's heavy handbag filled with loyalty cards are quickly becoming artefacts of a different era. “Today, everything’s on your phone. Your cards are on your phone,” said Jonathan Spencer, brand head at OneDayOnly. “All your buy now, pay later options are also on your phone. You can check everything on your banking apps on your phone.”

OneDayOnly, the South African daily deals site, has lived through this shift first-hand. Launched in 2010, the platform made its name by offering discounts on a number of different products each day.

Spencer said the way the site had kept up with evolving payment technology by adding different methods, removing friction and keeping data secure kept younger shoppers clicking.

South African Reserve Bank data shows that digital payments (such as mobile wallets, tap-and-go and QR codes) are used by 53% of the youth in the country.