Market insight
Baby Boomers and Gen Z: From Spare Change to Smartphone Payments
Do you know which generation you belong to? Maybe you are a Millennial who grew up watching Harry Potter and perfecting the art of selfies? Or perhaps you’re a Baby Boomer who remembers the moon landing and rock ‘n’ roll as the greatest revolutions of your time. Each generation is shaped by their unique experiences, values, and behaviors. But did you know that your generation can also influence how you prefer to pay?
In this blog post, we explore how the backgrounds and preferences of different generations are reflected in their payment habits. Understanding your customers’ payment patterns allows you to tailor your strategy and create customer experiences that extend far beyond the payment terminal.
Read on and discover how you can add value – from spare change to smartphone payments!
Generation Z and Millennials
Generation Z (born approximately 1997-2012) are digital natives who have grown up in a world where the internet and smartphones are constants. Millennials (born 1981-1996) came of age during rapid globalization and unprecedented technological advancements.*
Both generations prioritize digital payment solutions, such as mobile wallets, subscription services, and app-based transactions. Speed, flexibility, and simplicity are critical when selecting payment methods. As early adopters of new technology, these groups embrace innovative payment options, reflecting their preference for modern and efficient solutions.**
Generation X
Born between 1965 and 1980, Generation X came of age during a somewhat transitional era between analogue and digital technology, and are often referred to as "the forgotten generation". *
This group has a distinct preference for card payments - both online and in physical stores. While surveys indicate they are open to exploring newer options like "buy now, pay later" services, traditional cards remain the most widely used payment method for this generation.**
Baby Boomers and The Silent Generation
Baby Boomers (1946-1964) grew up during the post-war economic boom, making them one of the largest generations in history. The Silent Generation (born before 1945) experienced the challenges of the world wars and the Great Depression, often embodying values of austerity and strong traditions.*
These older generations tend to favor traditional payment methods, with cash still playing a significant role in their transactions. However, cards are becoming increasingly integral to their daily routines. They value payment solutions that are simple, familiar, and easy to use, reflecting their preference for stability and reliability over fast-evolving technological trends.**
So how can you use this information?
Ultimately, that’s up to you. However, we recommend using it to tailor the payment solutions you offer to align with the preferences of your customer base. Here are some suggestions:
Generation Z and Millennials: Prioritize fast and flexible solutions like mobile wallets, subscription payments, and app-based payment options.
Generation X: Focus on optimizing card payment processes to ensure they are quick, secure, and user-friendly both online and in-store. Implement efficient payment systems and offer a variety of card options to suit different preferences.
Baby Boomers and The Silent Generation: These groups often prefer cash, so accepting it remains essential. For those who prefer to pay by card, make sure your card payment systems are simple and intuitive.
By adapting your payment options to meet the needs of different generations, you create a safer, more satisfying customer experience - This not only enhances your conversion rates but also fosters loyalty across all age groups.
* Peek, S. (2024, July 9). Know your customers: How different generations prefer to pay. Retrieved January 22, 2025, from https://www.business.com/articles/kristen-gramigna-customer-payments/
** Gramigna, K. (2024, July 9). Different generations and their payment preferences. Retrieved January 22, 2025, from https://www.business.com/articles/kristen-gramigna-customer-payments/