Gen Z Has Arrived. Is Your Business Ready for the Next Generation’s Billing and Payment Preferences?
Move over Millennials, Gen Z has arrived. They’re entering the workforce… and they too have bills to pay.
The largest of any generation, Gen Z is the first to grow up entirely surrounded by the technology that defines today’s world, from smartphones and social media to ubiquitous high-speed internet. This digital exposure has given Gen Zers – the oldest of whom are 22 – distinct digital preferences and, not unlike Millennials, the need for instant gratification.
In order to keep up with the new wave of consumers and their growing spending power, it’s vital that businesses understand Gen Z’s billing and payment needs. Based on our recent ACI Speedpay Pulse consumer billing and behaviors survey, we’ve outlined three things that billers and corporates can do to provide a seamless billing and payments experience for the next generation.
1. Expand Mobile
As true digital natives, Gen Zers are comfortable using technology to do just about anything – whether it’s ordering pizza, checking their bank account or calling an Uber. So it’s no surprise that this mobile-first generation is more likely than past generations – including Gen X and Baby Boomers – to utilize a mobile app (13.9 percent) or mobile wallet (34.9 percent) to make a bill payment. To keep up with their preferences, companies should consider expanding bill pay offerings to allow consumers to pay however they like: by mobile app, website or even text message. Additionally, the onus is on bill pay solution providers to keep a finger on the pulse of cutting-edge mobile offerings that will appeal to the next generation as they come of age.
2. Be “always on”
Gen Z is accustomed to being constantly connected, with 99.1 percent owning a smartphone. And while every consumer, regardless of age, desires a high level of customer service from their mortgage lender or their utility provider, Gen Zers expect to be connected 24/7/365. To accommodate this, companies should consider solutions that give them that access. Tools such as chatbots and interactive voice response (IVR) solutions give them the ability to check accounts, view bills and make payments anytime, anywhere – especially after business hours. In fact, Gen Z is significantly more likely to trust these AI-powered solutions, and they believe they will help improve customer service (30.8%), as compared to only 21.4 percent of Millennials, 4.2 percent of Gen X and 7.2 percent of Baby Boomers.
3. Stay nimble
The one thing that is clear about technology is that it is ever-changing – just like consumers’ needs and desires. While companies continue to serve today’s consumer, it’s important to think beyond the next five or ten years. What new payment methods will be utilized? How will new biometric technologies keep our payments secure? Will artificial intelligence change the way we pay? Companies must stay nimble and continue to evolve their services and solutions for customers.
With Gen Z entering the workforce in growing numbers, companies should already be preparing for this digitally-minded consumer base. By expanding mobile billing and payment offerings, giving consumers constant access to services and staying agile as technology advances, companies can cater to this next generation of consumers.
Learn more about next-generation billing and payment preferences: download the ACI Speedpay Pulse Trend Report “Is Your Business Ready for Gen Z”
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