Jonathan Spencer | Manager | Brand & Campaign | OneDayOnly.co.za | mail me |
By 2030, Generation Z (Gen Z) will be the biggest-spending generation across much of Sub-Saharan Africa. Already, South Africa’s youngest consumers are transforming how the country pays. I have seen that for Gen Z, speed, choice and digital convenience are not just nice to have. They are non-negotiable.
As payment habits evolve, businesses that fall behind risk becoming irrelevant. In South Africa, 95% of consumers already use emerging payment methods. While many retailers recognise this shift, few have truly delivered the seamless, mobile-first experiences that Gen Z expects. Gen Z wants to pay in ways that align with their digital lifestyles.
Gen Z demands options at checkout
Whether it is digital wallets, mobile payment services, Buy Now Pay Later (BNPL) options or scan-to-pay apps, Gen Z demands efficiency, flexibility and control. They will walk away from the checkout if they do not get it.
Global research confirms this. Nearly 60% of consumers say convenient payment options are essential to completing an online purchase.
Among Gen Z shoppers, that number rises to 65%. Many abandon their carts if their preferred method is not available. Gen Z wants to pay their way, and they are not afraid to leave if that does not happen.
Financial tools that fit their lives
These changing behaviours reveal something deeper. For Gen Z, digital financial tools go beyond transactions. They offer empowerment. Gen Z wants to pay with tools that let them budget in real time, access interest-free credit, and participate in the economy without needing a traditional bank account.
In fact, 72% of South African Gen Zs say they are more cautious with money than before. They want smarter ways to manage their finances, earn rewards and plan for the future. And they show loyalty to brands that support that journey.
At the same time, their constant presence online is balanced by growing concerns around data privacy. This generation values secure, frictionless payment experiences that protect their personal information.
I have seen payment solutions like Apple Pay and Stitch’s “Pay by Bank” gain momentum. They offer card-free, secure transactions that shield user data and lower fraud risk.
Why fintech is winning Gen Z
The G20 Global Partnership for Financial Inclusion recently reported that young people in Sub-Saharan Africa are gravitating toward digital-first financial services. Traditional banks are falling behind.
In South Africa, I see this trend reflected in the rising use of scan-to-pay apps like SnapScan and Zapper. These services match Gen Z’s mobile-first lifestyle and desire for speed and control.
BNPL services are growing rapidly. According to KenResearch, South Africa’s BNPL transaction volume is projected to grow by 26% annually through 2027.
Rewards that make sense
We are already seeing strong uptake in BNPL payments from providers like PayFlex, particularly among younger shoppers. These services offer flexibility, but without the interest rates or barriers that come with traditional credit cards.
Payment is not the only area where Gen Z expects control. Loyalty programmes also need to evolve. Research from local firm KLA shows that Gen Z prefers personalised rewards and flexible redemption options. They do not respond well to outdated point systems.
Discounts on essentials, instant rewards, and benefits that feel customised are what resonate. Brands that create their own programmes or collaborate with platforms like FNB eBucks and Discovery Miles are getting it right.
What should retailers do?
To stay relevant, I believe retailers must start by auditing their existing payment options. They need to identify where generational gaps exist. Investing in mobile-first technologies like scan-to-pay, digital wallets, and BNPL is no longer optional. These are now essential to meet Gen Z’s expectations.
Retailers should also use payment data to personalise user experiences. Strengthening digital security helps build trust. Partnering with leading fintech providers can offer the edge needed to connect with Gen Z.
Young consumers value speed, choice, and trust. Retailers who prioritise those qualities at every touchpoint will build stronger, lasting relationships with this generation.
