GenZ and the thriving Crypto Payment Industry in 2022
Every generation has ushered in groundbreaking technological advancement that defined and transformed an era. Baby Boomers (born 1946 to 1964) got the first taste of television while Generation X (born 1965 to 1980) were introduced to personal computers. The Millennials (born 1981 to 1996) were the early birds of the Internet era and today's Gen Z (born 1997 to 2012) are beneficiaries of a rapidly changing financial landscape powered by Blockchain technology and driven by a vastly expanding crypto payment system.
Many have labeled this generation as very impatient, but the truth is Gen Z have been exposed from an early age to speed. Speed in communication via the various social media platforms and certainly speed in financial transactions through digital currency transactions.
This generation never had to join long queues at banks or even engage in face-to-face transactions with account managers. While other generations still maintain the status quo, Gen Z were born into a world of continuous change in online payment transactions. They are a rapidly adaptive generation that fully accept diversity and change, as long as it suits their need for speed. This is why this generation are widely regarded as chief protagonists and the future of the global cryptocurrency payment industry. And here's why!
Instant Gratification through Crypto Payment
Gen Z are totally dependent on their smartphones for virtually everything. For entertainment - check. For communication - check. For shopping - check. For financial transactions - check. It therefore goes without saying that this generation has zero tolerance for delay of any kind.
So, while traditional banking methods are still preferred by older generations, Gen Z are really not convinced by it all. The crypto payment system is designed to cut-of-the-middleman which in this case is the traditional banking system. This means transactions are not delayed by the mandatory centralized clearing system for checks or transfer of funds online.
Gen Z prefers crypto payments since they receive instant gratification, as all transactions are instantaneous in nature. This is music to the ears of this generation that thrives on things being done with speed.
Gen Z are Street Smart Demanding More for Less
Maybe there's no truth in this, but Gen Z are often described as lazy by other generations. The truth is, Gen Z exemplifies the mantra of 'work smart, not hard' to the fullest. This generation demands more for less. But while some might argue that this is not peculiar to any generation, the reality is while other generations second-guess the necessity for change in payment transactions, Gen Z are quick to take full advantage of the inherent merits of such change. For example, the transaction costs involved in crypto payment is far less compared to traditional financial transactions.
However, many Baby Boomers, Generation X, and even Millennials still prefer using the financial services of traditional banking systems despite the comparably higher transactional costs involved. International fund transfer through banks can cost in excess of USD$30 depending on the value of funds, where they emanate from and the location the funds are being transferred to. Traditional wire transfers cost much more than transfers via the crypto payment system and this is regardless of congestion in the blockchain powering such transactions.
Crypto Wallets Not Bank Accounts
Traditional banking involves an intricate process of personal identification, background and even credit verifications before accounts can be opened. Ask anyone from this generation and they will tell you that they don't have time for that, and rightly so.
With the cryptocurrency payment system, you only need your smartphone, Internet connection, and a crypto wallet. What's more, you are not subjected to any identification, background or even credit verifications. Unlike traditional banking services that operate under a centralized financial system, cryptocurrency payment operates under a decentralized, P2P, blockchain system.
To generation Z, this is just perfect, especially since crypto payment guarantees fast, seamless transactions done without strenuous, time consuming verifications needed for opening a conventional bank account.
Unrivaled Security Wins It!
Cryptocurrency payment may be a recent trend in comparison with other conventional payment methods, but it is catching on pretty fast. And one of the main reasons for this can be linked to the unrivaled security it offers. Your crypto wallet comes with a unique private key that ensures no one can have access to your funds and that includes hackers or cybercriminals.
However, this is not the case with more traditional payment systems which are at a far greater risk of cyber-threats. For a generation that thrives on online transactions for virtually everything, the high security offered by the blockchain crypto payment system is more preferable to any other form of payment.
Gen Z crave Privacy and Transparency
You only have to visit social media platforms like Twitter to see that pseudonyms are the order of the day. You have people who display pictures and names that are obviously not real. This same logic applies to crypto wallets and payments. For starters, crypto payment transactions do not require the use of real identities. Your crypto wallet address is all that is needed, that forms your identity in any blockchain transaction.
For this generation, this is great, it means they can transact business in anonymity and not disclose any personal details to anyone. Gen Z spend the better part of their day online which acts as their office, social circle, and play pen. Crypto payment offers a resource for anyone, generation Z or otherwise, wishing to remain anonymous whilst engaging in fund transfer, shopping, and transactional payments online.
In addition to this, all crypto Payments occur on a completely transparent public distributed blockchain ledger. You can easily check the details of a transaction including the amount of cryptocurrency that was sent, when the funds were sent, and where they emanated from.
The funds in a crypto wallet can also be checked, and this transparency helps to greatly minimize fraudulent payment transactions. You can prove that you have available funds in your wallet. You can prove that money was sent. And you can also prove that money was received by the recipient(s) in a crypto payment transaction.
It is estimated that Millenials and Gen Z contribute to about 94% of buyers of cryptocurrency and in extension those that make use of the cryptocurrency payment system. While the ratio of Millennials using crypto payment compared to Gen Z is understandably higher at present, a reversal of this trend is expected in the not too distant future.
Indeed, it is anticipated that the growth in the cryptocurrency payment industry will hit an unprecedented high level within the next decade. It is also anticipated that Gen Z will play a significant role in this rise and as this generation reaches their mid-20s in 2022, the industry is expected to experience an upward trajectory from this year.