Author: Dražen Tomić, ICT Business
Generation Z’s global purchasing power is estimated at over €400 billion. Although many retailers don’t yet view them as their primary audience, it’s essential to evolve business practices in line with the times and keep up with trends, as their moment is certainly coming.
At the Weekend Media Festival, we had the opportunity to talk with Damir Čaušević, co-founder and director of Monri Payments, and co-founder of the Money Motion conference. Čaušević moderated the panel “Gen Z Buy Now Pay How” at WMF, which brought together experts from e-commerce, retail, and digital media to discuss the purchasing and payment habits of Generation Z and what this means for retailers and brands. We spoke with Čaušević about the key topics discussed at the panel and how Monri is adapting to the needs and expectations of younger generations.
Q: During the panel, you discussed the specific habits of Generation Z regarding shopping and payment. What stood out the most?
Generation Z has completely different expectations compared to previous generations. They grew up with technology, meaning they expect speed, simplicity, and a seamless process, whether shopping or paying. On the panel, we highlighted that they want everything to be “within reach.” For instance, Dario Marčac noted that TikTok and Snapchat dominate as platforms where they gather information and communicate. While social media has enabled direct shopping, in Croatia, these options aren’t fully developed yet, but we will undoubtedly see this soon.
Additionally, regarding payment, we’ve noticed that Generation Z is using cash less and less. This was confirmed by Daniel Šturm from Kaufland, who pointed out that more than two-thirds of younger customers prefer cards or digital wallets, marking a key shift in how retail operates.
According to research reported by BBC and Bloomberg, Generation Z’s global purchasing power is estimated at over €400 billion. Although many retailers don’t yet see them as their primary audience, it’s important to evolve businesses in line with the times and keep up with trends because their time is definitely coming. The panel emphasized that Generation Z spans from ages 12 to 27, meaning the oldest members are approaching their 30s, so it might already be time to start thinking about adapting to Generation Alpha!
Q: How is Monri adapting to these changes and the needs of younger generations?
As a company developing advanced payment solutions, our main focus is ensuring that users have the fastest, simplest, and most flexible payment experience. Younger generations demand simplicity and adaptability, so we are working on integrating various payment methods, from cards to digital wallets and cryptocurrencies. Our strategy is to provide clients with options that meet the needs of their customers, whether they use physical cards, Apple Pay, Google Pay, or local digital wallets.
Research shows that over 70% of Generation Z prefers to pay using debit or credit cards, with a trend towards debit cards among younger customers, while the preference for credit cards increases with age. When talking about alternative payment methods, it’s no surprise that younger generations are early adopters of technology, being three times more likely to use digital wallets and cryptocurrencies than other generations.
In addition to keeping up with technological advancements, as a payment provider, we are particularly focused on developing omnichannel solutions that blur the lines between offline and online worlds. A good example of such solutions would be paying for a hotel reservation online and then paying the remaining amount upon arrival. For both the hotel and the guest, it has to be a unified experience and a connected transaction. We’ve also worked on a solution with a client that allows customers to scan items they carry in their cart while walking through a store, and then pay at the checkout by scanning a QR code that displays all the items in their cart.
Q: You mentioned “local” payment methods. What do you mean by that, and in which markets do you see the biggest challenges and how do you handle regional differences?
By local payment methods, I primarily mean that each market has some specificities, with different preferences for payment, especially when it comes to digital wallets. Across the region, there are differences in which wallets are used in which countries, and as a regional service provider, we see a growing trend where digital payments, such as wallets or QR codes, are becoming more accepted, even among older generations.
Additionally, we are observing growing interest in cryptocurrency payments, which requires collaboration with partner companies to allow users to pay with cryptocurrencies on one hand, and merchants to receive their national currency on the other.
We are developing localized solutions tailored to the preferences of each market. We are also working with various clients to ensure that as many payment methods as possible are integrated into their system, enabling merchants to expand into new markets with localized payment options.
Q: Let’s talk a bit more about cryptocurrencies. How do you see their role in the future of payments?
Cryptocurrencies are still in the early stages of mass adoption, but they definitely have the potential to become a more widely used payment method, especially among younger generations who are more open to new technologies. Cryptocurrency users see many advantages, such as the privacy they offer, the decentralization of finances, or the potential reduction in transaction costs.
At Monri, in the last four years, we’ve seen a 20% annual growth in merchants offering cryptocurrencies as a payment method across the entire region. Within the region, Croatia is an undisputed leader in payment trends, including the adoption of cryptocurrencies. Today, we’re talking about a smaller number and volume of transactions paid in cryptocurrencies (often involving consumer goods), but we expect that the growing interest will also increase transaction volumes as cryptocurrencies are offered in industries with higher transaction amounts (e.g., the automotive, insurance, or real estate industries).
Globally, a major advantage of cryptocurrencies lies in financial inclusion, as in countries with unstable financial systems or places where access to traditional banking services is limited, cryptocurrencies can be used to allow people to participate in the global economy without the need for bank accounts, or significantly reduce the costs of sending and receiving money.
Of course, we are also aware of certain challenges here, such as regulatory uncertainty and cryptocurrency volatility. Overall, the future of cryptocurrencies looks promising, but their development will depend on technological, legislative, and market factors.
Q: Finally, what can we expect from the future of payments and online shopping, particularly regarding younger generations?
Looking at how generations have evolved in terms of their expectations for payment, we’ll notice that security used to be the top priority. For older generations, trust and protection were crucial—will my data be protected? Will the transaction be secure? Today, however, security is a basic requirement that all participants in the financial industry must meet at a very high level. In a world where security is unquestionable, young people today demand speed and simplicity. Generation Z expects instant processes, and their tolerance for waiting is minimal.
Our solutions must be so fast that payments should not take longer than the duration of a TikTok video. This means that retailers must perfect every step of the user experience, from login to the final transaction, to adapt to the habits and preferences of new generations. The role of digital wallets and one-click payments is also significant because Gen Z wants flexibility and a sense of control. I’m confident that speed and process fluidity will define the future of payments.
This interview was originaly published in Croatian on ICT Business.
