Gen Z consumers in the GCC value personalisation over privacy and choose to pay digitally, according to a white paper by Amazon Payment Services.
More than half of the research respondents expressed their preference for paying digitally, with payment cards and mobile wallets being the most popular options.
The study is based on findings from a survey undertaken among more than 1,800 respondents across the UAE, Saudi Arabia and Egypt.
Those surveyed particularly favoured BNPL methods as a convenient way to pay for expensive items. Zero interest, lack of paperwork and tight budget were all listed as the key reasons.
The vast majority of Gen Z respondents across the three countries were aware of peer-to-peer transfer apps, with awareness reaching 92 per cent in Egypt driven by the early availability of the national Instant Payment Network. The majority across the UAE, Saudi Arabia and Egypt said they conducted such transfers via an app or another method at least once.
Research also revealed high awareness of in-app payments. However, those surveyed suggested retailers should consider using discounts to steer more purchases toward mobile apps to incentivise this payment method. Super apps were particularly favoured by UAE respondents for their convenience.
Personalisation takes precedence
The majority of Gen Z respondents said that they pay more attention to personalisation than privacy. This is in contrast to previous generations who had much more reservations about sharing their data, according to the white paper.
One Gen Z respondent said: “I am aware cookies track down the websites I visit and target advertisement towards me as per my taste and choice. [But] I get relevant content on what would interest me, making my online experience more personalised.”
On the other hand, millennials who participated in the survey had more qualms about data sharing. For instance, one millennial said: “I am very careful and reluctant in sharing my data, I feel unsafe and prefer to only click on websites I know. Even on known websites, I do not share my information.”
Key strategies for retailers
To woo reach Gen Z consumers, retailers should be aware not only of their behaviours but also of underlying motivations.
Gen Z were born into the world of digital natives unlike the digital immigrants who preceded them which meant early exposure to global issues. To gain interest from this generation, businesses should be more attuned to their values and develop a suitable corporate social responsibility strategy.
Amazon also noted that Gen Z is also one of the most entrepreneurial generations, especially in the Middle East. This implies a strong desire for financial independence. Thus, retailers should offer more loyalty programmes and reward schemes to grab the attention of the financially savvy generation.
