4 Payment Trends in 2019: Gen Z, Omnichannel & More

 February 21st, 2019

The everchanging payment landscape of 2019 shows no signs of staying still. Customer expectations are shifting, new regulations are coming into play and many new technologies are being developed. We picked 4 trends that we expect to have a significant impact on the payment landscape.

Gen Z – New Generation of Buyers

Born approximately between 1995 – 2010, Generation Z is growing up with the internet, online shopping, and most importantly, smartphones. It comes as no surprise that they welcome fast, convenient technologies like mobile wallets, peer-to-peer payments and other similar innovations. They want an immediate and highly personalized shopping experience. An online, especially social media, presence of your business is almost a must to attract their attention.

Accenture reports that 69% of ‘GenZers‘ use mobile banking apps almost daily, vastly outnumbering the 17% of Baby Boomers doing the same.

Estimated to become the largest customer group this year, Gen Z pushes businesses to adapt quickly to their growing demands. In the end of the day, the way you cater to Gen Z can make or break your business.

Omnichannel – Mobile, Desktop, PoS & Voice Assistants

Older generations might be slower to adapt to new technologies but are happy to do so if it makes their lives more comfortable. This does not necessarily mean that everything should be done on a smartphone. On the contrary, it is becoming more common to shop via multiple channels. Monetate reports that most people prefer to research products on their mobile and will later buy it either on their desktop or at the next brick & mortar store.

No matter if it is via mobile, desktop, or at the PoS, an omnichannel experience gives flexibility when it comes to payments. Customers may want to pay with their credit card, use mobile payments, issue an invoice, or setup a recurring payment. Or maybe they would want to order their groceries via Alexa or Siri. Providing a frictionless shopping experience across all channels while enabling the customer to pay the way they prefer is an essential aspect of a successful business model.

A Love-Hate Relationship between Banks & Fintech

Traditional banks and fintech were fierce competitors for a while. Recently, this relationship has become more cooperative.

The arrival of the Second Payment Services Directive (PSD2) in January 2018 marked the start of a new era for payments. Third-Party Providers (TPPs) now have complete access to the customer’s bank account, which opens up the most optimal way to quickly process a payment.

It is important to mention that the deadline for banks to implement the EU’s Regulatory Technical Standards of Strong Customer Authentication (SCA) is September 14, 2019. In order to enable a smooth integration of third parties, banks and PSPs have to provide testing facilities for their new APIs by the end of March 2019. By opening access to the customer’s accounts, many fear numerous security breaches, bringing us to our last point on the list.

And what about Security?

Frictionless payments can sometimes cause new problems. While open systems are great for speeding up processes, it might also leave these same processes vulnerable to security breaches. A recent report from Paysafe reveals that 59% of the surveyed SMBs named security as a key differentiator when choosing a PSP, giving it a higher priority than reliability (49%) and cost (47%).

But how can you inspire customer’s trust and make them feel protected from fraud?

To gain the trust of the customers, it is vital to implement modern authentication methods as a possible alternative to the classic email & password scenario. As we reported in our Checkout Optimization article, the use of biometrics is becoming more common. Some even believe that it will replace traditional passwords completely.

Current payment trends promise an exciting year. GenZ is shaping up to be the most impactful generation. Customer expectations are shifting towards a frictionless omnichannel experience. And while PSD2 facilitates these desired seamless payments, it requires a higher priority on the security and safe authentication methods to find public appeal. By keeping these trends in mind and staying up-to-date, businesses can look forward to a successful year ahead.

Comments for this post:

Your email address will not be published. Required fields are marked *

What’s Next?


Your unified payment experience starts here.


Contact us
  • Explore Further
  • Experience Live Demo
  • Calculate Your Benefits
  • Play in Sandbox
  • Brainstorm Business Ideas
  • Fix Individual Workshop