2022: Going passwordless to capture Gen Z market
- Survey finds that 50% of Gen Zers abandon online purchases if they forget their passwords.
- Gen Zers in Asia spend more time on social media than other age groups.
- They are also amenable to using password-less authentication, especially biometrics.
Digital and social media marketing have been significant players in the evolution of e-commerce, especially amongst the Gen Z demographic.
However, according to a new survey of over 600 Generation Zers, 50% of them abandon their online shopping carts if they forget their passwords. This is compared to 16% of millennial shoppers, and 4% of baby boomers.
Gen Zers not only possess a collective buying power of over US$150 billion but are also a critical demographic for banks and payment systems. That’s a lot of lost business for online retailers.
Gen Z in APAC wield largest economic power
The survey by Transmit Security suggests the economic power wielded by Gen Z is the fastest-growing, globally. In fact, Gen Zers in the Asia Pacific accounts for 89% of this group, with Singapore and Indonesia topping the list at 91% and 95%, respectively. Earnings are expected to hit US$33 trillion by 2030, which translates into over 25% of the world’s income.
Gen Zers in Asia spend more time on social media than any other age cohort. As such, they are a critical demographic for brands as they have so much purchasing power. However, many businesses that fail to provide seamless user experiences, particularly with sign-up and login, stand to really lose out.
The survey also found that:
- 85.3% of the Gen Z participants use smartphones to do some or all their online shopping
- 83.3% use smartphones to log in to their banking accounts and payment systems
- 37% only use their phones for online banking and payments
- 58.2% have failed to complete website registrations because due to overly complex processes.
- Over 50% of Gen Zers have left a website, and 50% have abandoned an online purchase because they forgot their password.
Meanwhile, 80% have also admitted that they have used the “Forgot My Password” option within the last few months, and more than 50% confirm they reuse the same password for different accounts.
According to McKinsey, Gen Zers in the Asia Pacific like to research before they shop, with many interested in finding deals.
In Australia, 66% of Gen Zers surveyed say they always look for discounts before buying, and in China, the share is 50%; that is 10% more than its millennial peers. South Korean and Japanese Gen Zers are less willing than millennials to provide retailers and service providers personal information, however.
Moving towards passwordless authentication
Traditional passwords will not work with this demographic.
Instead, Gen Zers and businesses alike will benefit from offering a passwordless authentication experience that eliminates the use of passwords in the entire customer journey.
“The Gen Z demographic is not just digitally native, they have grown up with the world in their hands, constantly connected on either a mobile phone or tablet,” said Transmit Security CEO and Co-Founder Mickey Boodaei.
“Our findings confirm they want it all: fast, easy, and secure online experiences. We also discovered many are reckless with their passwords, so businesses need to protect their accounts for them,” he added.
The study suggests that Gen Z is ready for passwordless authentication methods, especially with biometrics — this will be the norm for Gen Z, with 95% using the technology by 2022.
The report indicates this generation will be a driver of change in the market, moving towards more seamless and frictionless security experiences as they enter the workforce.
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