Almost 30 per cent of Gen Z would prefer to pay online when purchasing health and wellbeing services or products, compared to less than six per cent of the Silent Generation
A new study has underscored the significance of offering customers a variety of payment choices, particularly as digital platforms gain popularity among younger age groups.
Almost one in three (30 per cent) people surveyed by payments solutions provider, Access PaySuite reported a negative experience when purchasing health and wellbeing products or services due to limited payment options.
The research showed that online and in-person cash payments were the most preferred modes of payment, while more than a quarter of consumers expressed their preference for paying through Direct Debit.
About 17 per cent of the participants favoured using a mobile app for payments during the booking process, followed by mobile in-person options like Google Pay (14 per cent) and phone-based transactions using debit or credit card) (13 per cent).
Expectedly, generational differences were seen in the choice of payment methods. Almost 30 per cent of respondents belonging to Generation Z (those born between 1997–2010) said they would rather pay online, compared to less than 6 per cent of the Silent Generation (those born between 1928–1945).
Hence, the study report emphasised that pharmacy businesses need to make “significant changes to their business operations” to meet the expectations of Gen Z.
Andrea Dunlop, managing director of Access PaySuite, commented: “It’s no surprise that the ongoing economic difficulties consumers are facing means that many are already weighing up the affordability of health and wellbeing treatments or products.
“Households are having to make difficult choices about where they spend their increasingly stretched disposable income.
“Our findings highlight the challenges facing businesses in the pharmacy sector and businesses need to keep up with consumer expectations around payments.
“For businesses that can have a transformative impact on the day-to-day lives of their customers, it’s even more important to remove barriers to sale,” he said.
He added that consumers expect a range of convenient payment options that suit their needs while stressing the fact that online and mobile payments have become essential for daily operations, particularly for those younger demographics.
Statistics from UK Finance showed that three in ten adults are registered for mobile payments, compared to 54 per cent and 48 per cent for 16-24 and 25-34-year-olds respectively.
Open Banking UK data also indicated that 10 per cent of British consumers are active users of open banking, with Gen Z being a significant demographic contributing to this adoption.
Broader research conducted by TransUnion revealed that 42 per cent of Gen Z have used open banking services.