By 2030, Gen Z will be the biggest-spending generation in much of Sub-Saharan Africa, and already, South Africa's youngest consumers are changing the way the country pays.

This is according to Jonathan Spencer of OneDayOnly.co.za, who says that for Gen Z, speed, choice, and digital convenience are essential.

He adds that as payment habits evolve, businesses that don’t keep up risk losing relevance in a market where 95% of consumers already use emerging payment methods. “While many retailers see this shift, few have fully delivered the seamless, mobile-first experiences that Gen Z expects.”

Gen Z demands options at checkout

“Whether it’s digital wallets, mobile payment services, Buy Now Pay Later (BNPL) services, or scan-to-pay apps, Gen Z wants efficiency, flexibility, and control, and they’ll walk away if they don’t get it,” explains Spencer.  

Global research shows that nearly 60% of consumers say convenient payment options are essential to completing an online purchase. Among Gen Z shoppers, that figure rises to 65%, with many abandoning carts if their preferred method isn’t available.

Financial tools that fit their lives

“These shifting behaviours reveal a deeper insight: for Gen Z, digital financial tools aren’t only about transactions, they provide empowerment,” he points out. “They use these to budget in real-time, access interest-free credit, and participate in the economy without requiring a traditional bank account.”

With 72% of South African Gen Zs citing they are more cautious with money than before, they want better ways to manage their finances, earn rewards, and plan for the future. “And they’re loyal to brands that enable that journey,” notes Spencer.

He adds that Gen Z’s constant online presence is matched by a growing concern for data privacy. “This generation places high value on secure, frictionless payment experiences that protect their personal information. As a result, we‘ve noticed that payment solutions like Apple Pay and Stitch’s ‘Pay by Bank’ are gaining popularity by offering secure, card-free transactions that protect user data and reduce exposure to fraud.”

Why fintech is winning Gen Z

A G20 Global Partnership for Financial Inclusion report found that young people in Sub-Saharan African markets are leaning into digital-first financial services over traditional banks.

In South Africa, Spencer sees this trend play out through Gen Z’s growing use of scan-to-pay apps like SnapScan and Zapper, which align with their mobile-first habits.

The BNPL revolution

BNPL services are gaining ground fast. According to KenResearch, the country’s BNPL transaction volume is expected to grow by 26% annually through 2027.

“We are seeing strong uptake of BNPL payments offered by the likes of PayFlex, especially among younger consumers,” shares Spencer. “They offer flexibility without the interest rates or barriers of traditional credit cards.”

Rewards that make sense

Payment isn’t the only thing Gen Z wants control over. They also expect more from loyalty programmes. Local research firm KLA found that this generation favours personalised rewards and flexible redemption options over traditional points systems.

“Discounts on essentials, instant rewards, and benefits that feel customised are what land,” says Spencer. “Brands that build their own programmes or partner with platforms like FNB eBucks or Discovery Miles are hitting the mark.”

What retailers should do

To stay relevant, he suggests that retailers start by auditing their existing payment options and identifying generational gaps. “Investing in mobile-first technologies like scan-to-pay, digital wallets, and BNPL is no longer optional.”

He adds that using payment data to personalise experiences, strengthening digital security to build trust, and partnering with leading fintech providers can give businesses the edge they need to connect with Gen Z shoppers.

“Young consumers value speed, choice, and trust,” Spencer concludes. “Retailers who prioritise those qualities across every touchpoint will build stronger, lasting connections with Gen Z.”

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