Generation Z vs. Millennials: Where do they prefer to shop and how do they pay?

In a context where online shopping seems to be the norm, a recent analysis by PaynoPain reveals that consumer preferences are not so straightforward. By comparing Generation Z (18 to 30 years old) and Millennials (31 to 40 years old) to understand where they prefer to shop and what their payment preferences are, the data highlights varying behaviors between online shopping and in-store experiences, underscoring the importance of understanding these trends to adapt to market demands.

According to the “Payment Methods: The Final Decision 2024” survey by PaynoPain, 45% of Millennials still prefer shopping in physical stores, compared to 43% who opt for eCommerce. Only 5% consult online before going to stores, while another 5% do the opposite.

Generation Z, on the other hand, leans more towards online shopping, with 36% preferring eCommerce, although 34% still shop in person. Additionally, 23% explore online options before making a physical store purchase, while 7% prefer to examine products in person before buying online. These figures highlight the relevance of in-person interactions in purchase decisions, even in the digital age.

Generation Z: Between Digital and Physical

40% of Generation Z prefers to shop online, and when they do, 53% use wallets as their primary payment method, surpassing card payments (42%). However, 34% still opt for in-person shopping, highlighting the importance of direct product interaction in-store. In these cases, wallets are also the preferred method (57%), with only 8% using cash.

This group also combines both experiences: 6% visit physical stores before purchasing online, while 22% compare options online before completing the purchase in-store. This behaviour demonstrates the growing importance of omni-channel shopping, a trend that is increasingly relevant to young consumers.

Millennials: The Power of Physical Experience

Millennials continue to show a preference for shopping in physical stores (45%), slightly surpassing online shopping (43%). Unlike Generation Z, they are less likely to combine both channels: only 5% search in physical stores before buying online, and another 5% do the opposite.

When it comes to payment methods in-store, 49% of Millennials prefer wallets like Apple Pay or Google Pay, while 37% use credit or debit cards. The remaining 13% opt for cash. Online, cards are the preferred option (56%). These results emphasise that, although Millennials have grown up in the digital age, the physical shopping experience remains key to their purchasing decisions. Despite their technological habits, many still prefer to touch and try products before making a final decision.

Omni-channel as the Key to the Future of Retail

The survey results emphasise the importance of omni-channel shopping behaviour, especially among younger consumers. Generation Z, which increasingly combines online and physical shopping, is a clear example of this trend. 22% of them research online before making their purchase in a physical store, seeking the best of both worlds.

For businesses today, the key is to offer a seamless shopping experience between both channels, allowing consumers to search, compare, and purchase without interruption, regardless of whether the process begins online or in-store. The ease of moving between these two environments not only enhances the user experience but also increases conversion opportunities.

At PaynoPain, we have identified that integrating payment solutions that work both digitally and physically is a crucial step in meeting these new market demands. Providing fast and secure payments via wallets, cards, or transfers across both channels is essential for businesses to meet the expectations of modern consumers.