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UAE: 75% of 8-year-olds make online payments on their own, study shows

The survey also revealed that 92% of 15-year-olds in the country make purchases online without parental guidance

Move over GenZ, it’s time for the Gen Alpha in the digital world.

A global study released by Checkout.com, a leading global digital payments provider, shows that 75 per cent of eight-year-olds and 92 per cent of 15-year-olds in the UAE make payments themselves, rather than via a grown up.

The study 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.

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

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 per cent of their allowance on games, while children in other countries spend 28 per cent.

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

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 per cent of them showing preference for this option.

Globally, study finds that Generation Alpha is driving over a quarter 27 per cent of their household’s monthly spend globally, rising to nearly a third of monthly spend for digital purchases, as 29 per cent 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 per cent of the average global household spend.

Generation Alpha’s purchase influence is greatest in online educational resources, which nearly half 47 per cent of parents purchase for their children, followed by entertainment streaming, purchased by a third 30 per cent 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 per cent, China: 56 per cent, UK: 48 per cent, UAE, 41 per cent. Further, social commerce is the most common shopping channel, globally, for Gen Zs in all countries, with only just over one-third (35 per cent) of Gen Zs regularly shopping in physical stores.

“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.”