Gen Z and millennials prioritise security in luxury payments

Specifically, these groups are increasingly prioritising quality, sustainability, and secure shopping experiences. Tink, a payment services and data enrichment provider, surveyed over 2,000 UK consumers and 500 high-end merchants to examine evolving consumer expectations and economic pressures in the luxury sector. 

Findings indicate that Gen Z and millennials account for the largest share of luxury purchases, acquiring an average of 16 and 14 items per year, respectively. However, with cost-of-living concerns, these consumers are becoming more selective, focusing on products that combine quality with ethical production practices.

The role of reputation and trust in luxury purchases

The research suggests that consumer trust and brand reputation play a significant role in purchasing decisions. According to the survey, 73% of millennials and 64% of Gen Z respondents prefer investing in high-quality purchases that offer longevity. Sustainability is also a key consideration, with 63% of Gen Z and 62% of millennials willing to pay a premium for ethically produced goods. 

Additionally, 76% of Gen Z and 75% of millennials are willing to pay more for brands with strong reputations. Payment security is a notable concern, as 58% of Gen Z and 64% of millennials cite it as a priority when purchasing high-value items. More than half of Gen Z (56%) and millennials (52%) express reluctance toward making expensive online purchases due to concerns over fraud and payment failures. 

In response to these concerns, 68% of high-end merchants plan to improve their payment systems within the next year to provide a more secure and seamless checkout process. Transparency is another factor influencing payment preferences, with 36% of Gen Z and 42% of millennials looking for methods without hidden fees, while 34% of Gen Z and 38% of millennials prioritise fraud prevention measures. 

Tink representatives noted that understanding the changing expectations of younger luxury consumers is crucial for businesses operating in the high-end market. They emphasised that these customers are looking for more than just premium products, as they value an experience that integrates sustainability, quality, and secure payments. 

They also also highlighted that investing in modern payment solutions, such as Pay by Bank, could help merchants build consumer trust by offering a familiar and secure authentication process.