Young woman smiling whilst scanning a QR code with her smartphone for contactless payment in a shop, demonstrating Gen Z mobile payment preferences

Gen Z Shopping Habits: What They Expect at Checkout (And Why It Matters)

Gen Z shopping habits are reshaping how retailers approach checkout. This generation, born between 1997 and 2012, now controls significant spending power and their expectations are completely different to those of previous generations. For UK retailers and small business owners, understanding what Gen Z wants at checkout isn’t just helpful, it’s essential for staying competitive.

Cash? What Cash?

Here’s something that might surprise you: most Gen Z shoppers genuinely don’t carry cash anymore. Digital payments have become so ingrained in their daily lives that physical money feels almost archaic to them.

When was the last time you saw a young person at the till counting out coins? The shift towards digital payments isn’t coming, it’s already here, and Gen Z are leading the charge. UK Finance data reveals that contactless payments have reached new heights in 2024, with nearly 95% of eligible in-store card transactions now made using tap-to-pay technology. If your till doesn’t accept modern payment methods, you’re essentially missing out on a significant portion of potential customers without realising it.

The Digital Payment Era

Gen Z represents the future of retail spending, with their purchasing power expected to reach £12 trillion globally by 2030. Businesses adapting to their shopping habits now are building customer relationships that will last decades.

According to UK Finance, the official trade association for UK banking and payments, digital payments have become the preferred choice for younger generations, with the majority favouring contactless digital options over cash. This isn’t just a passing trend, it’s how this generation has been shaped to shop.

What does this mean for your business? If you’re not offering digital payment options, you’re likely losing sales before they even happen. Research shows that over half of UK consumers aged 16 to 24 use mobile wallets like Apple Pay and Google Pay as their primary payment method. Many don’t even own a traditional wallet anymore. Their phone does everything: pays for coffee, splits bills with friends, orders takeaway, and handles their shopping.

This is why having contactless payment solutions isn’t just a nice extra, it’s essential for capturing this market. The beauty of mobile wallets goes beyond convenience. Gen Z trust them because they’re secure, with built-in encryption that protects their information far better than carrying around physical cards.

Speed Matters More Than You Think

Gen Z shopping habits are defined by one word: friction. Or rather, the complete absence of it. Every extra click, every unnecessary form field, every moment of confusion increases the chance they’ll abandon their cart and shop elsewhere.

They’re not being difficult, they’re being efficient. When you’ve grown up with apps that remember everything, websites that autofill details, and purchases that take seconds, anything slower feels outdated.

Here’s the reality: if your checkout takes longer than ordering an Uber, you’re losing customers. Research consistently shows that complicated checkout processes are one of the top reasons people abandon purchases, and Gen Z are twice as likely to simply give up if their preferred payment method isn’t available at checkout.

Getting Checkout Right for Gen Z Habits

Understanding Gen Z shopping habits means recognising what actually matters to them. Here’s what makes the difference:

  • Keep It Simple: Your checkout should be straightforward and intuitive. Guest checkout option? Essential. Asking for unnecessary information? They’ll leave. If you don’t absolutely need that information to complete and ship their order, don’t ask for it.
  • Go Mobile First: More than two-thirds of online shopping now happens on mobile phones. If your checkout isn’t optimised for mobile, with easily tappable buttons and minimal typing required, you’re making it difficult for customers to buy from you.
  • Offer Choice: Different customers want different payment options. Some prefer Apple Pay for speed, others want to use Clearpay to spread the cost. Having multiple payment solutions means never turning away a sale because you don’t support their preferred method.
  • No Surprise Costs: Nothing stops a sale faster than unexpected delivery charges appearing at the final step. Be upfront about all costs early in the process. Transparency builds trust and loyalty.

The Blended Shopping Journey

Gen Z shopping habits don’t fit neatly into online or offline categories. They blur the lines constantly. They’ll scroll Instagram for inspiration, watch TikTok reviews, visit your physical shop to see products in person, then complete the purchase on your website whilst sitting on the bus home.

This omnichannel approach means your payment experience needs to be seamless everywhere. The customer using contactless in your shop should find the same smooth, efficient experience when they browse your site later. Everything needs to connect to create a cohesive journey.

Whether they’re shopping in store or online, Gen Z expects consistency. This is where having integrated mobile payment solutions across all your channels becomes invaluable. It creates the unified experience this generation has come to expect.


Ready to Modernise Your Payment Experience?

Understanding Gen Z shopping habits is one thing. Creating a checkout experience that converts them into loyal customers is another. New Payment Innovation UK can help you offer the flexible, fast payment solutions that Gen Z expects.

Call us on 023 8001 9998 or visit npi.uk to discover how we can transform your payment processes and keep your business ahead of the curve.

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