A recent global study by Checkout.com, a leading digital payments provider, reveals surprising insights into the digital behavior of Generation Alpha, children aged 8 to 15. The study shows that 75% of 8-year-olds and 92% of 15-year-olds in the UAE are independently making payments without the assistance of adults.
Key Findings on Consumer Behavior
The research, conducted across the UAE, UK, US, and China, focuses on the spending habits of Gen Alpha, who are emerging as key players in the digital economy. The study highlights their growing purchasing power and reveals unique trends compared to other generations.
- Shopping Preferences:
- While 54% of millennials shop on direct-to-consumer websites, 51% of Gen Z prefer social media for their purchases, showcasing the rise of social commerce as a dominant shopping method.
- E-Gaming Dominance:
- Gen Alpha in the UAE leads in spending on e-gaming services, using 47% of their allowance for gaming, compared to 28% in other countries like the UK, US, and China.
Luxury and Big-Ticket Spending Rising
The study reports a notable increase in spending on high-end items, signaling a return to travel and luxury markets:
- Luxury goods purchases increased by 46%.
- Purchases of whitegoods rose by 30%.
- Planned flight bookings saw a 25% boost, reflecting renewed interest in tourism.
Buy Now, Pay Later (BNPL) Among Teens
In the UAE, Gen Alpha over 13 years old is showing a growing preference for BNPL payment methods, with 11% of this group opting for this option.
Global Trends in Gen Alpha’s Influence
Globally, Gen Alpha drives 27% of their household’s monthly spending, rising to nearly one-third for digital purchases. Millennial parents play a significant role, with 29% purchasing digital products for their children monthly.
- The most influenced categories include:
- Online educational resources (47%)
- Entertainment streaming services (30%)
Social Commerce: A Key Shopping Channel
Social media is the go-to platform for both Gen Alpha and Gen Z when discovering and purchasing products. The study shows little regional variation, with Gen Alpha preferring social commerce in:
- US: 57%
- China: 56%
- UK: 48%
- UAE: 41%
Meanwhile, physical store shopping is less common, with only 35% of Gen Z regularly shopping in person.
Expert Insight
Rory O’Neill, Chief Marketing Officer at Checkout.com, said,
“Generation Alpha is significantly influencing the digital economy. They aren’t just using social media for discovery but actively purchasing through these platforms. Businesses must adapt to these trends, especially in payment methods, to foster growth and loyalty in this competitive market.”
