Gen X embraces electronic payments
“Generation X”, whose collective purchasing power accounts for much of the electronic payment in Thailand, are the “emerging market” for new payment methods, translating into growth opportunities for businesses at a time when “Generation Y” comes of age,
For this study, Gen X is defined as those between 35 and 60 years old, while Gen Y are aged 18-34.
A preference for electronic payments among Gen X Thais remains strong, according to the study. Six out of 10 (59 per cent) prefer card payments over cash for safety reasons, compared with four out of 10 (42 per cent) among Gen Y.
The study identified and tracked the changing attitudes towards payments among consumers in Southeast Asian markets including Thailand.
“We see a ‘new wine in old bottles’ phenomenon, evident in the widespread adoption of digital payments among high-spending Gen X, particularly through mobile devices. At the same time, we register the growing spending power among Gen Y. These demographic shifts provide ample opportunities for businesses and financial institutions,” said Suripong Tantiyanon, Visa country manager for Thailand.
While cash is still the preferred option, the potential of other payment methods has been recognised. In the study, 66 per cent of Gen Y surveyed said they were actively using dedicated mobile applications to shop online – compared with 44 per cent among Gen X. But the latter is catching up quickly.
Gen X and Gen Y show a similar level of interest in using mobile payments, at 81 and 82 per cent respectively. Both cited saving time with faster transactions as the main reason (77 per cent). Gen X placed more emphasis on ease of use (60 per cent versus 56 per cent) and the convenience of going cashless (60 per cent vs 55 per cent).
For both groups, payments are also increasingly made on mobile devices. Frequent purchase of items such as entertainment tickets and food-delivery services has become the new norm for all ages. For example, at least half of Gen X and Gen Y surveyed said they were now buying movie tickets regularly on their mobile devices. The same goes with food delivery and event and concert tickets.
Repeated usage is a good indicator of how mobile payment has won over Gen X: 63 per cent, for example, said they bought beauty and cosmetic products specifically via mobile devices, having started using mobile payment only a year ago.
Both Gen X and Gen Y also said they were interested in shopping in stores and paying with mobile devices (67 and 59 per cent respectively). Interest in making payments using wearables is also similar across the two groups, with Gen X (80 per cent) not far behind Gen Y (87 per cent). Groceries, food and beverages, and movie tickets are the top three categories for using wearables to pay. Gen X, who brought home the first personal computers and did not mind paying hundreds of thousands of baht for the first tumbler-size cellphones, are not always the laggards when it comes to adopting new payment technology.
