Does age determine how shoppers might choose to pay?
We know that shopper behaviour varies by country, but does age and gender impacts buying decisions? We asked over 20,000 shoppers from 10 countries to find out.
A number of demographic trends emerged during our research – one of the most compelling is that of a clear split in behaviour starting at 50 years across all regions. We’re calling it the “global 50 phenomenon”.
We’ve learned that, on average globally, over 50% of shoppers above age 50 predominantly spend on credit. And for some markets, this trend is even more pronounced. Take Japan for example, in which a whopping 93% of shoppers over 50 make credit their main spending method.
On the other hand, we see that shoppers under 50 spending on debit and alternative payment types (or non-card methods). A third of shoppers aged 18-34 globally choose debit, with an even more defined population preference in the UK and Netherlands.
Take it even younger and we find yet more preferences. Millennials aged 18-24 vastly prefer to pay using alternative types. Our data shows that market penetration is in fact personified with these younger buying groups.
This trend is made even more relevant with the discovery that this generation of the future is also being underserved.
1 in 5 of these millennial shoppers say they are underwhelmed at the checkout and want more payment choice. They’re using payment methods because that’s what most websites use – not because they prefer to.
They’re craving options which are not only safe and secure, but which offer control over their finances.
There’s much more to see with the data, which you can access here, but here are a couple of takeaways for retailers:
- Regardless of target market, it’s crucial to understand payment method uptake by market first
- If you’re targeting millennials, give them more options to pay – especially if it gives them greater control over their finances
- Be sure to offer the right payment mix, meaning those appealing most to your target market group
Find out how age, gender and location affect the ways your target customers buy online with our interactive tool...