A Generation of Late Payers
Did you know that Gen Z is having a hard time understanding and paying their bills? A recent consumer survey conducted sponsored by Visa shed some light on the current “epidemic”.
According to Forbes, the generation after Millennials, Generation Z, which they defined as people born from the mid-1990s to the early 2000s, make up 32% of the global population, making them a larger cohort than the Baby Boomers or Millennials.
Here is what we learned:
They Don’t Understand Bills
When it comes to reading and understanding bills, 30% of Gen Z find their bills to be confusing. Additionally, this generation has more anxiety than any other age group when it comes to paying their bills. This translates into calls and late payments.
They Forget To Pay
In the last 12 months 53% of Gen Z payed a bill late. The reason behind it is that they have not developed the financial habits to promote prompt on-time payments. For Gen Z its not a matter of not having the money to pay their bills, they simply forget.
Gen Z Needs Bill Paying To Be Easier
Companies aren’t meeting the needs of Gen Z who are looking for easier ways to pay their bills.
Format bills for mobile devices. 87% of U.S. consumers use smartphones
Personalize messages and keep them short and sweet
Innovative payment methods, such as text message payments. Text messaging is now the preferred customer service channel of Americans.
Accept payment with credit cards. Some companies do not yet accept them in every way consumers could interact with them (mobile, web, live chat, in person, phone). This is a frustrating experience for all consumers, with Gen Z being the most frustrated at their inability to pay by card.
Engage them and convert them to a recurring payment plan. Consumers using recurring payments have 70 percent lower delinquencies.
All data comes from consumer survey sponsored by Visa and conducted by Aite Group.