A new FIS survey® (NYSE: FIS), shows how the purchasing preferences of young UK consumers have evolved as the adoption of integrated financial services reaches mainstream use among Millennials and Gen Z, while their older counterparts are less interested in new digitally-oriented financial experiences.
Integrated finance is when consumers have unique and personalized financial services delivered to them when they need them by non-financial companies. Most often, consumers use in-app finance in the form of in-app payments, such as on social media platforms where a purchase is made without leaving the platform or as Buy Now Pay Later offers at checkout. There is also growing potential for the use of integrated finance in loyalty programs, investments and insurance offerings as consumers become more comfortable accessing financial services through non-traditional means.
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Young consumers want to shop seamlessly via social media:
- 78% of Gen Z and 70% of Millennials say they are likely to make a purchase directly through a social media platform in the next 12 months, according to the recent survey.
- Meanwhile, Gen Z (27%) and Millennials (24%) said they believe social media purchases encourage more frequent and unplanned spending.
Gen Z consumers expect to inhabit and shop in the metaverse:
o All generations combined, 43% of consumers say they are likely to access the metaverse within the next 12 months.
o However, only 21% of Baby Boomers said they plan to use Metaverse during this time, while 62% of Gen Z consumers said they would be willing to make a purchase in Metaverse.
o Those willing to make purchases in the metaverse in the next 12 months said they would be willing to buy tickets to events (43%), buy games or gaming tokens (42%) and bank (31 %), including investments, insurance and loans within the metaverse.
Built-in loyalty offers convenience and multiple financial choices:
o 48% of consumers believe convenience is the biggest benefit of collecting loyalty points digitally, with 44% prioritizing the ability to use points immediately.
o Incorporating investment opportunities and micro-donations into loyalty programs was more popular with Gen Z than other age groups.
o Conversely, 77% of baby boomers said they still expect to accumulate loyalty points on a physical card in their wallet, such as a coffee stamp card, within the next 12 months.
Preferred fast and integrated payment experiences, even when shopping in person:
o 67% of Gen Z and 65% of Gen Y said they would like to visit a supermarket without a till, compared to 51% of Gen X and just 29% of Baby Boomers.
o The biggest benefit of cashless supermarkets is that they make purchases and payments faster, according to Gen Z (56%), Millennials (57%) and Gen X (47%)
“Having grown up with almost everything available at the click of a button, young consumers are savvy digital natives who expect a seamless customer journey with advanced options to make a purchase,” said Silvia Mensdorff-Pouilly, Senior Vice President of Banking & Payments in Europe at FIS. “These customers don’t want to leave the website or app they’re using, do multiple registrations, or deal with customer service staff; they want minimal friction and smooth service. FIS has invested in these capabilities so that businesses of all types can integrate the right financial products and services at the right time, across multiple channels and with instant payment options. These investments support our vision to advance the way the world pays, banks and invests across channels today and tomorrow. »
About the survey
Ipsos was commissioned by FIS to conduct the survey in September 2022 of 1,000 UK consumers across Gen Z (18-24), Millennials (25-40), Gen X (41-54) and Baby Boomers (55+).
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