(MENAFN- Khaleej Times) As this generation enters the workforce with increasing spending power, their preferences for affordable and flexible payment methods are reshaping the way payments are made.
As merchants look to cater to Gen Z's needs, Amazon Payment Services , a key player in the regional payment industry, continues to enable solutions for merchants that align with the financial needs of Gen Z such as Buy-Now, Pay-Later and instalments.
The easy plan on the go
Known for its tech-savviness, entrepreneurial spirit, and financial consciousness, this generation seeks payment methods that provide both flexibility and affordability. The traditional concept of making one-time payments is losing its appeal, as Gen Z seeks financial control and convenient ways to manage their spending.
As an example, Buy-Now, Pay-Later has gained significant momentum in the Middle East and North Africa (MENA) among the Gen Z audience. This payment option allows customers to split the cost of their purchases into interest-free monthly payments , aligning with Gen Z's preference for affordability and convenience.
According to a study by SixthFactor Consulting, sponsored by Amazon Payment Services , about 54% of Gen Z respondents in the UAE expressed that they are likely to use Buy-Now, Pay-Later in the future, with slightly less interest in Saudi Arabia and Egypt with 52% and 44%, respectively.
Similarly, Instalments, an offering which Amazon Payment Services offers through banks, provides flexibility and convenience to customers, allowing Gen Z to make purchases on their credit card which they can pay back over time, aligning with their financial planning and desire for greater control over their finances.
Affordable payment methods - Just a click away
It's essential for merchants to recognise and meet Gen Z's demand for flexible payment methods . This can be achieved through partnerships with trusted payment service providers like Amazon Payment Services.
In the UAE and Saudi Arabia, Amazon Payment Services has partnered with Tabby, a leading Buy-Now, Pay-Later provider in the Middle East. Tabby's Buy-Now, Pay-Later service allows customers to split the cost of their purchases over four months with no interest or processing fees.
Commenting on the partnership, Peter George, Managing Director of Amazon Payment Services in MENA, said: "Zero interest rate transaction financing offered by Tabby will help increase sales and reduce cart abandonment for Amazon Payment Services merchants. This partnership allows merchants to enable flexible payment options for their customers, and better places them to convert website browsers into new and returning customers."
Amazon Payment Services Instalments Offering
As part of its mission to stay ahead of trends, Amazon Payment Services introduced the option for merchants to avail Instalments as a payment solution years ago. This flagship solution automatically converts shoppers' purchases into instalments with select banks, eliminating the need for customers to contact their banks directly. The service is accessible through approved cards issued by local and international banks.
Amazon Payment Services' credit card Instalments offering has proven to be effective, increasing the average online shopping basket size by 20-25% and growing overall sales by 10-15%. While customers who make a purchase on their credit card, using an Instalments offer from their bank, receives the value of their purchase upfront and repays their bank in instalments, merchants receive the full value of the customer's payment at the time of purchase. This approach makes both small and large purchases more affordable, giving customers increased spending power and building trust between shoppers and merchants.
Gen Z's preference for flexible and affordable payment methods is rapidly changing the landscape of digital payments. Amazon Payment Services, with its commitment to provide innovative payment solutions, is well-positioned to meet the financial needs of Gen Z.
For merchants, partnering with trusted payment service providers like Amazon Payment Services is essential to cater to the evolving payment preferences of this digital-native generation. As they continue to gain financial independence, their influence in shaping the future of payments cannot be understated.
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