Payments Blog

Know Your Consumer: 4 Online Spending Habits of Generation Z

By 2020, Generation Z (those born between 1995 and 2015, roughly), will be the largest group of consumers worldwide, making up 40% of the US, Europe and BRIC (Brazil, Russia, India and China) countries, and 10% in the rest of the world.

This massive generation is very different from those before it, and while they are still relatively young, it is important for merchants to understand Generation Z spending habits and get to know their biggest consumers. These young shoppers could be impacting your fraud rate and more important the huge false positive problem in our industry today.

Here are 4 key spending habits of Generation Z:

  1. Lack brand loyalty

“The products themselves are more important to Generation Z than the brands that produce them, and these consumers will change brands easily in search of higher quality” (Martin-Wilbourne Partners)

  1. Eat, sleep, breathe digital

Generation Z is constantly connected. They were born seamless and expect a similarly seamless retail experience.

  1. Do their research

About 57% of Gen Z research products before making a purchase.

  1. Prefer shopping online

Gen Z spends almost one in ten of their dollars online and spends a much higher proportion of their income online compared to older generations. As they join the workforce and make more and more money, this will likely drive more and more online spending.

It is so important to know your consumers and how they shop, and your newest consumers are from Generation Z. They are coming of age now and in the next few years. Don’t let fraud and false positives send your good Millennials and Generation Z consumers away. Cardinal is your solution to eliminate false positives and minimize fraud for this next generation of shoppers. Stay tuned for next week’s blog where we will dive into how Generation Z is shopping and what sets them apart from Millennials.


With One Connection to Cardinal we can FutureProof™ your business.


Posted by Michael Roche

Michael Roche is the Vice President of Consumer Authentication where he focuses on developing and strengthening relationships with enterprise partners in order to provide them with eCommerce solutions tailored to their needs.Mike is our Consumer Authentication expert. He is instrumental in soliciting feedback from Customers to improve current products and shape new product development.

Mike has been with CardinalCommerce since 2003, serving in many different capacities throughout his tenure. He is the founding member of the sales force and merchant support teams, where he has had the opportunity to contribute and lead the development of all of Cardinal’s Consumer Authentication programs, while working very closely with both Visa and MasterCard on their design and deployment of 3-D Secure. Mike is a member of The Payments Committee with the Merchant Risk Council (MRC) and is active with other industry organizations such as the Direct Response Forum, Electronic Transaction Association, Secure Remote Payments Council, and Cardholder Not Present Forum. He is frequently invited to speak at industry events on various payments- and fraud-related topics, in the U.S. and internationally.

Mike holds two Bachelor of Arts degrees with distinction from John Carroll University and is pursuing his MBA from Case Western Reserve University. In his free time, Mike enjoys fishing on Lake Erie, is a history fanatic and also is a published author. His greatest pride and accomplishments are his daughter Theodora, his son Macklin and beautiful wife Rebecca.

Find me on: LinkedIn

Aug 16, 2016 8:30:00 AM

Topics: CardinalCommerce, millennials, generation z, eCommerce

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