The New Generation of Spenders: What Businesses Need to Know About Gen Z and Millennials

Millennials and Gen Z now account for approximately 32% of consumer spending. At the same time, Gen Z’s global spending power is projected to reach $12.6 trillion by 2030, making it one of the most influential consumer groups worldwide.

This new generation of consumers is shaping how global commerce works. For many businesses, the challenge lies in understanding why younger consumers behave so differently from previous generations.

One reason is that they grew up in a world of instant access, personalised experiences, and digital-first commerce. So, they expect brands to be available wherever they shop, offer seamless payment experiences, and reflect the values and lifestyles that matter to them. Businesses that fail to meet those expectations risk losing customers long before a transaction ever reaches the checkout page.

Who are today’s new generation of spenders?

Millennials, born between 1981 and 1996, and Gen Z, born between 1997 and 2012, grew up alongside the rise of technology and are accustomed to a world with smartphones, social media, and instant connectivity.

Unlike previous generations, Millennials and Gen Z discover products through creators, communities, and social platforms. They compare prices instantly, research reviews before purchasing, and expect every interaction with a brand to be fast, intuitive, and personalised.

For these consumers, trust, convenience, authenticity, and customer experience often play a larger role in purchasing decisions than traditional advertising.

How Gen Z and Millennials are changing consumer spending

For businesses, the shift in spending behaviour is influencing how consumers discover brands, evaluate purchases, choose payment methods, and define value.

#1 Discovery happens everywhere

Rather than moving directly from advertisement to purchase, younger consumers nowadays discover products through social media, creators, online communities, and peer recommendations. They then research reviews and compare prices before completing the purchase on a brand’s website or mobile app.

Gen Z and Millennials also expect transactions to be quick and require minimal effort. Research found that 64% of Gen Z and Millennials would take their business elsewhere if in-app payments were not available.

#2 Digital payments are becoming the default

Cash is rapidly losing relevance among younger consumers, while digital wallets, mobile payments, peer-to-peer transfers, and Buy Now, Pay Later (BNPL) solutions continue to gain adoption.

However, payment preferences are not universal. Younger consumers trust and prefer local payment methods, such as PIX in Brazil and UPI in India.

#3 Value over brand loyalty

Millennials and Gen Z tend to be more deliberate in their purchasing decisions than many brands assume. They compare alternatives, research products extensively, and often seek validation from reviews, creators, and online communities before making a purchase.

This means that they spend more intentionally. They are often willing to switch brands if another option offers a better experience, stronger values, greater convenience, or a more compelling price point.

The biggest checkout mistakes businesses make and their fixes

Consumer expectations have changed dramatically over the past decade, but many checkout experiences have not kept pace.

#1 Offering too few payment methods

Many businesses assume that accepting major credit and debit cards is enough. In reality, payment preferences vary significantly across generations and markets. A customer in Brazil may expect PIX, while a shopper in India may prefer UPI. When customers cannot find their preferred payment method, many simply abandon the purchase.

Quick fix

Analyse payment preferences in each market and offer the methods customers trust. The closer the checkout experience aligns with local payment habits, the higher the likelihood of conversion.

#2 Ignoring mobile checkout optimisation

For younger consumers, mobile devices are often the primary shopping channel. Yet many businesses still design checkout experiences with desktop users in mind.

Small form fields, slow-loading pages, difficult navigation, and excessive typing requirements can make completing a purchase feel difficult on a mobile device. When that happens, many shoppers will simply leave rather than continue.

Quick fix

Reduce the number of required fields, support digital wallets and autofill, and regularly test the checkout experience across devices and operating systems.

#4 Creating unnecessary checkout steps

Many checkout journeys have gradually become more complicated as businesses add features, collect more customer data, or introduce additional processes. Unfortunately, consumers rarely view these steps as valuable.

Customers who have already decided to buy often abandon purchases simply because the process takes too long or requires more effort than expected.

Quick fix

Audit the checkout journey regularly and remove anything that does not directly contribute to completing the transaction. The fastest path to payment is often the most effective one.

#4 Not investing in trust and transparency

Gen Z and Millennials are highly connected consumers with access to more information than any previous generation. Before making a purchase, many will read reviews, compare alternatives, assess a brand’s credibility, and look for signals that a business is trustworthy.

Quick fix

Clear pricing, transparent policies, secure payment experiences, responsive customer support, and consistent communication all contribute to consumer confidence. When trust is established, customers are more likely to complete transactions, return for future purchases, and recommend brands to others.

#5 Not preparing for cross-border growth

The next generation of spenders increasingly purchase from brands based in different countries and engage with businesses across multiple digital channels. As a result, even companies focused on domestic markets today may find themselves attracting customers from abroad tomorrow.

Quick fix

Invest in infrastructure that scales with changing consumer behaviour, accepts local payment methods, supports multiple currencies, complies with regional requirements, and delivers consistent customer experiences across markets.

Meeting the expectations of the new generation of spenders

As consumers expect fast, intuitive, and localised journeys, businesses that fail to meet these preferences risk losing customers long before a transaction is completed.

Unlimit offers the global financial infrastructure that helps businesses seamlessly grow across international markets. With a single integrated technology stack, businesses can accept payments across markets using a wide range of global and local payment methods.

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