Global study from Checkout.com reveals Gen Alpha’s rising influence in digital economy 

A global study released by Checkout.com, leading global digital payments provider, highlights the consumer buying behaviour of Generation Alpha, which is powering today’s digital economy. The research, conducted across the UAE, UK, US, and China, reveals and compares a number of trends, related to the growing spending power of this consumer category. 

Generation Alpha in the UAE, proficient in online shopping

The study highlighted several key trends related to Generation Alpha, (children aged 8-15 y) in the UAE, offering a snapshot of how technology and social platforms are influencing purchasing decisions locally.

The findings reveal that while 54% of millennials shop on direct-to-consumer websites, Gen Z turns to social media, with 51% of them preferring to shop via social media platforms, underlining the growing preference for social commerce.

Furthermore, the study also indicates that Generation Alpha in the UAE is leading the way in e-gaming services, compared to the UK, China and the US, spending 47% of their allowance on games, while children in other countries spend 28%.

The study also marks an upswing in consumer spending intentions for high-end and big-ticket items, the study revealed a 46% increase in luxury goods purchases, a 30% increase in whitegoods purchases, and a 25% increase in planned flight purchases, signaling a rebound in travel and tourism spending.

Apart from being the beneficiaries of their parents’ spending, children in the UAE are also spending independently in the digital economy, as 75% of 8-year-olds and 92% of 15-year-olds make payments themselves, rather than via a grown up.

The study further reveals the growing trend among generation Alpha in the UAE over the age of 13 to use “buy now, pay later” (BNPL) as a payment method, with 11% of them showing preference for this option.

Globally, study finds that Generation Alpha is driving over a quarter 27% of their household’s monthly spend globally, rising to nearly a third of monthly spend for digital purchases, as 29% of Millennial parents take responsibility for purchasing digital products each month for their children. This comes as digital products and services make up over a fifth 21% of the average global household spend.

Generation Alpha’s purchase influence is greatest in online educational resources, which nearly half 47% of parents purchase for their children, followed by entertainment streaming, purchased by a third 30% of parents globally.

Social commerce is considered a key shopping channel for Generation Alpha in all countries covered in the study. Children around the world use social media as the go-to source for finding out about deals on products, with very little regional variation in preference, US: 57%, China: 56%, UK: 48%, UAE, 41%. Further, social commerce is the most common shopping channel, globally, for Gen Zs in all countries, with only just over one-third (35%) of Gen Zs regularly shopping in physical stores.

There’s also a growing trend of children over 13 using Buy Now, Pay Later (BNPL) as a payment method in the US (7%), UAE (11%), and China (19%). This figure is less than 1% in the UK, however.

“It’s clear that Generation Alpha is playing a major role in the digital economy”, said Rory O’Neill, Chief Marketing Officer at Checkout.com “The younger generation is going beyond using social channels for discovery, but actually purchasing through these platforms. We're seeing this unfold in China, which should always be considered the blueprint for future commerce. “Whatsmore, businesses need to pay close attention to customer preferences for payment - across all generations - in order to drive growth and loyalty in this fast-changing and competitive market.”