COLUMBUS, Ohio, Oct. 20, 2021 /PRNewswire/ -- Alliance Data
Systems Corporation (NYSE: ADS), a leading global
provider of data-driven marketing, loyalty and payment solutions,
today released findings from a national study that assesses payment
wants, habits and attitudes of Gen Z consumers. The results show
that while the majority want traditional credit card rewards and
perks – 86% want cash back on everyday purchases; 84% want rewards
that never expire; and 83% want to earn bonus rewards on certain
spend categories – 78% admit they are also afraid of assuming
debt.
Additional findings from the study include that many Gen Z
shoppers want:
Credit – but are shut out: Nearly three in 10 (27%) Gen
Zers claim they were turned down when applying for their first
credit card – a rate that is two-times higher than any other
generation.
A blend of traditional and digital choices: While cash
and debit cards are the top payment types across all consumers, Gen
Z also welcomes non-traditional digital payment options. The
majority (53%) use person-to-person payment apps (more than any
other generation), half (50%) use PayPal, and one in four (25%)
would consider using cryptocurrency.
Purchase-based payment flexibility: Payment use among Gen
Z is influenced by the purchase at hand. Looking at purchases
valued between $30 and $150, credit cards are preferred by more than one
in three (36%) Gen Z shoppers, while one in 10 say they would use
buy now, pay later for a $500
purchase.
End-to-end control: When asked about features they would
like to see in their payment solutions, nearly eight in 10 (79%)
want to manage all of their accounts in one place, and digitally
pay from whichever account they choose. More than half (59%) want
the ability to schedule all of their split payments on a single day
of their choosing.
Secure experiences: The study found that security is
more important to Gen Z than any other generation. Nearly nine in
10 (86%) want protection from fraudulent websites, over eight
in 10 (83%) want the ability to lock their account if they expect
fraud, and more than three in four (76%) want two-step
authentication for the payment methods they use.
"Our study depicts a cautious, responsible and choice-driven Gen
Z consumer – but one whose needs are not fully being met by
traditional credit and other payment options," said Val Greer, EVP and chief commercial officer,
Alliance Data. "With $143 billion
in buying power, retailers can open the door to this group
which in 10 years is projected to have more buying power than
millennials and baby boomers combined, by diversifying payment
choice that includes tech-driven, clear-termed financing like buy
now, pay later, that eases debt fears and gives control over cash
flow."
To download the full "Next Gen Impact" study, visit:
www.alliancedatacardservices.com/insights-news/next-gen-impact
Study Methodology
A sample of 2,515 U.S. consumers
participated in the Next-Gen Impact study through an online
quantitative survey that took place from August 6-12, 2021. Additionally, qualitative
feedback was gathered from a total of 22 U.S. consumers, ages 16-24
in an online discussion board conducted on July 15 and 16, 2021.
About Alliance Data
Alliance Data ® (NYSE: ADS)
is a leading provider of data-driven marketing, loyalty and payment
solutions serving large, consumer-based industries. The Company
creates and deploys customized solutions that measurably change
consumer behavior while driving business growth and profitability
for some of today's most recognizable brands. Alliance Data helps
its partners create and increase customer loyalty across multiple
touch points using traditional, digital, mobile and emerging
technologies. Headquartered in Columbus,
Ohio, Alliance Data is an S&P MidCap 400 company that
consists of businesses that together employ approximately 8,000
associates at more than 45 locations worldwide.
Alliance Data's Card Services business is a comprehensive
provider of market-leading private label, co-brand, general purpose
and business credit card programs, digital payments, including
Bread®, and Comenity-branded financial services. LoyaltyOne owns
and operates the AIR MILES® Reward Program, Canada's most recognized loyalty program, and
Netherlands-based BrandLoyalty, a
global provider of tailor-made loyalty programs for grocers. More
information about Alliance Data can be found at
www.AllianceData.com.
Follow Alliance Data on Twitter, Facebook, LinkedIn, Instagram
and YouTube.
Contact:
Media
Rachel Stultz
Alliance Data
614-729-4890
rachel.stultz@alliancedata.com
Gabi Zepeda
Highwire PR
858-997-5667
gabi@highwirepr.com
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SOURCE Alliance Data Systems Corporation