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 Mainland 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 CardinalCommerce

Welcome to the CardinalCommerce blog. Cardinal is a global leader in authenticating digital transactions, with One Connection to drive digital commerce. Our goal for this blog is to provide a platform that will inform and educate our Customers and partners on consumer authentication, payments, mobile commerce, solution design and big data.

Topics: CardinalCommerce, millennials, generation z, eCommerce

Recent Posts


see all

Subscribe to our Blog