PAYMENTS solutions provider UnaCash expects Generation Z, or so-called Zoomers, who make up 32% of the population, to power Southeast Asia's (SEA) evolving e-commerce landscape.
Generation Z (those born between 1996 and 2010) currently makes up 32 percent of Southeast Asia's total population (221 million people), and an additional 57 million young people will contribute to the regional economy over the next five years. is expected to participate.
According to UnaCash, “Shopping accounts for the largest share of Gen Z spending.”
Shopping accounts for nearly a quarter, or 24%, of Gen Z's total spending in the Philippines, surpassing entertainment, events, and dining out, and retailers are looking to capitalize on this increasingly important market segment. Shopping has become extremely important.
Meanwhile, shopping in Vietnam accounts for 20% of Gen Z's total spending.
“Already, Gen Z is not only fundamentally changing and reshaping their sector, but also setting trends. Values and ideals will be imbued in the brand,” Unacash said.
According to another report by Statista, the average growth rate of the share of e-commerce sales in the region's trade volume will be 132 percent, and the size of the Southeast Asian e-commerce market in 2025 is expected to be USD 186 billion.
To adapt to the unique needs of the digital native generation, retailers need to invest in accessible digital platforms, leverage data to understand evolving customer needs and adopt flexible payment solutions, says Unacash. he said.
Recognizing that the Zoomer generation is leading the digital revolution due to their heavy reliance on smartphones and social media platforms, retailers are ramping up their resources in the digital space as digital channels generate more data. to better meet the evolving needs of this generation. Z in this new landscape.
Retailers are also encouraged to accelerate shopping momentum, with 66% of Zoomers shopping online, especially via mobile devices.
Additionally, integrating financial service providers such as e-wallets and buy now, pay later payment options into e-commerce platforms strengthens retailers' value propositions ahead of competitors in the local market.
UnaCash is also committed to continued investment in on-channel shopping, as both physical and digital platforms are critical to businesses, driving consumer traffic through physical and digital touchpoints. I mentioned it.
The Bank of the Philippines (BSP) earlier expressed bullishness that the continued rise of digital payment technology will facilitate the efficient delivery of financial services to unbanked businesses and micro, small and medium enterprises. Indicated.
BSP Deputy Governor Mamerto Tangonan attributes the significant progress in digital payments to the implementation of the BSP's 2020-2023 Digital Payments Transformation Roadmap with the support of public and private sector partners. Masu.
“In 2013, digital’s share of total retail payments started at just 1%. Fast forward to 2022, and the share of digital retail payment transactions reached a whopping 42.1%,” said Tangonan.
“I think we have achieved our 50% goal by the end of 2023,” he said.
Under the BSP's Digital Payments Transformation Roadmap and National Strategy for Financial Inclusion, half of all payment transactions will be done digitally by the end of 2023, and 70 percent of adult Filipinos will be required to have a formal account. there is.
