The latest research report published by Amazon Payment Services on the attitudes of Generation Z toward digital payments suggests that personalization is more important than privacy for this demographic.
Additionally, the report highlights that Gen Z favors digital payment options. The research, which surveyed more than 1,800 respondents from the United Arab Emirates (UAE), Saudi Arabia, and Egypt, is presented in a white paper.
According to the survey results, respondents expressed that Buy Now, Pay Later (BNPL) services are a convenient payment option for purchasing expensive items. The survey findings revealed that zero interest rates, minimal paperwork, and financial flexibility are the key factors driving the interest of Generation Z towards this payment method.
The research findings indicate that a significant majority of respondents in all three countries are familiar with peer-to-peer (P2P) transfer applications, with the highest awareness rate of up to 92 percent reported in Egypt, likely due to the early availability of the national Instant Payment Network. The majority of respondents in the UAE, KSA, and Egypt have reported conducting P2P transfers using a mobile application or another method at least once.
The findings also highlighted a high level of awareness among respondents about in-app payments. However, the study indicates that the use of this payment method is facing competition from other commonly used payment options. Respondents have suggested that merchants should consider offering discounts to encourage more purchases through mobile apps.
According to the paper, super apps were a welcomed category of in-app payments among the respondents. The study revealed that super apps, which are presently accessible in the UAE, were found to be highly convenient, resulting in increased awareness and adoption.
Peter George, who serves as the Managing Director for Amazon Payment Services in the Middle East and North Africa (MENA), emphasized the importance of securing the Gen Z demographic as a crucial customer segment for businesses. George stated that this demographic has the potential to drive future business growth for merchants.
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