Payment trend: Gen Z sets to work
New convenience: Several Neobanks offer online banking platforms targeted at Gen Z users with an emphasis on convenience and value, typically including features such as no minimum balance, no hidden fees, and getting paid early with direct deposit.
New ways to shop: Social commerce offers a new avenue to reach a generation that is more deeply connected with online influencers.
New ways to pay: P2P apps are generating new partnerships which allow their predominantly young user bases to spend their points balances at popular merchants like they would with a bank account.
What’s going on?
Generation Z – or Gen Z – comprising people born between 1997 and 2012, is now the world’s largest age cohort, accounting for 32% of the world’s total population.1 The first generation of true digital natives, they have just begun to enter financial maturity, reaching a time in their lives that is defined by change and financial decision-making (e.g., moving away from home, graduating from school, and entering the workforce).
The way Gen Z views employment is an interesting puzzle, and one that has significant benefits for businesses that can solve it. Typically, they are highly educated2 but have shown that their compensation, while important, is not the be-all-and-end-all goal of their employment. For example, Gen Zers are more likely to pursue or consider gig work than previous generations.3 The same sentiment applies to non-traditional streams of income (e.g., from streaming video games, creating, and monetizing digital content, or re-selling clothes).
Additionally, a recent LinkedIn analysis revealed that Gen Zers are more willing to job hop than older generations. In 2021, they switched jobs at a rate more than five-times higher than the next closest age cohort. When asked what factors were most important when seeking a new job, the top reasons can be categorized as:
- Personal Benefit: Taking a job with increased compensation or flexibility
- Personal Fulfillment: Taking a new job that aligns with their values4
These two themes are the cornerstone of what Gen Zers demand from the brands they engage with.