How Consumer Preferences Are Changing The Global Payment Landscape

Money By Forbes Magazine December 2, 2021

Andrew Gilboy, the North American GM for GoCardless, a leader in recurring payments, contends there is a massive trend toward automating and using digital payment methods in the United States — if companies can match consumer demand for it.

“There is a clear pattern that young generations have fewer credit cards and use them less often for spending,” he writes. Gilboy adds that “data also reveals that, on average, members of Gen Z do not even list credit cards as one of their top three preferred payment methods, as they do not want to make the mistake of previous generations by becoming trapped in never-ending debt.”

The GoCardless GM argues that subscription-based services are a main driver of this shift away from credit cards for younger Americans.

“Whether it is video streaming or a digital gym membership, the ubiquity and convenience of subscription-based models have been a perfect fit for the unique needs of consumers during the pandemic” and he thinks that can be a big driver of Gen Z shunning credit cards in favor of new automatic (and widely accepted) new payment methods.