Most of the world’s young population resides in India. Millennials account for 34% of the country’s population, while Gen Zers account for 27%. The millennials contribute hugely to the country’s economy, being the primary breadwinners for their families today. This demographic is expected to dominate the workforce in the next decade. During this time, the Gen Zers will also mature to assume critical roles in society.
Both these generations are digital natives. Along with ‘tech-savviness’, the Gen Zers have a ‘you only live once’ mindset that is reshaping the workplaces. Access to online platforms and social media has given them the power to share opinions, form their cultural aspirations, and spark new trends. They are certainly shaping the future of payments. Digital payments are a way of life now for them. Over 50% of global millennials could avoid purchases in shops that don’t offer contactless payments. It is precisely why India has outpaced the world in digital payments. Its huge young population, combined with the Government’s desire for a cashless economy is expected to drive the digital payments sector to reach $1 trillion by 2026.
Let’s understand what the priorities of the young generations in 2022 are.
Easy Access to Credit
There has been a notable psychological shift in consumer borrowing behaviour, resulting in increased demand for credit. For instance, people below 25 years of age are increasingly applying for short-term credit like personal loans, which have grown 3.8 times by volume, and 2.3 times by value between 2017 and 2021. They are using the credit for many things like education, buying 2-wheelers, mobile phones, providing working capital for their businesses, and much more. At the same time, they also stress the credit availing experience. A report found that in 2021, those between the ages of 23 to 26, were the prime drivers of BNPL. Digital platforms such as LazyPay offering credit avenues like BNPL (Buy Now Pay Later) will continue to be favoured by the young due to their desire for instant gratification, quick approvals, and easy repayment methods.
Flexible Work Opportunities
The pandemic has contributed to many kinds of stress for young people. Worries about finances, future education, jobs, and more have increased. Over 41% of millennials and 46% of Gen Zers agree feeling stressed out most of the time. It’s natural that they are reevaluating their life goals and preferences. Physical and mental well-being is becoming important. This will create more demand for a better work-life balance, and thus a preference for flexible work opportunities. The past 2 years have shown them, that gig work or freelancing can also help them pay bills. They will continue to capitalise on these trends in 2022.
Younger consumers have come to expect continued advancements in payment technologies to make commerce even more contactless, secure, and easy. Contactless debit cards, virtual credit cards, digital wallets, QR codes, tokenised cards, and more are only some examples. A 2021 report stated that India has the highest number of crypto users in the world. Many young freelancers, developers, and fund analysts working for foreign companies are now demanding to be paid in crypto. Another method gaining traction in the Asia-Pacific is tap-on-phone technology, enabling businesses to convert smartphones into PoS devices. Many of these fintech platforms are enabling young users to track their household budgets, check credit scores, get monthly analyses, and much more.
Perhaps no other generation is so keen on bringing positive societal impact as Gen Z. Millennials too want to see diversity, equality, and inclusivity in their workplaces. The younger Gen Zers prefer brands that show an inclination towards environmental sustainability, and social causes. This will continue to spur growth in sustainable retail as well as ESG investments. Dialogue around climate change and equitable access to healthcare will become prominent. Companies will show increased stress on upskilling, women’s safety, and conscious consumerism.
Rebuilding Their Social Life
After 2 years of social isolation, young people will seek to rebuild relationships at the workplace, and in their social circles. While it’s too early to say that the pandemic is under control, India’s high vaccination rate will bring in some semblance of normalcy again. This means increased shopping in malls, making travel plans, dining out, and perhaps resuming education in physical classrooms. This will again highlight the importance of proper masking mandates, and contactless technologies to book services, and make payments.
The young generations are critical for India’s post-pandemic recovery. Brands will continue to keep these priorities in mind while creating products or employing people. Unconventional and creative initiatives will be key to increased engagements.
Download the LazyPay app and enjoy making those purchases like you never have.