Checkout.com launches study on Generation Alpha's rising influence in the digital economy

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

More information on Gen Alpha’s rising influence in the digital economy

The study highlighted several key trends that are related to Gen Alpha in the UAE, offering a snapshot of how technology and social platforms are influencing the process of making 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 through the use of 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 and regions spend 28%.

At the same time, the study also marks an upswing in consumer spending intentions for high-end and big-ticket items. It was revealed an approximately 46% increase in luxury goods purchases, a 30% increase in white goods 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 overall 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 a preference for this option. The growing trend of children over 13 using Buy Now, Pay Later (BNPL) as a payment method is represented in the US (7%), UAE (11%), and China (19%). However, this figure is less than 1% in the UK.

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

Currently, Generation Alpha’s purchase influence represents the greatest in online educational resources, which nearly half 47% of parents purchase for their children. This is followed by entertainment streaming, purchased by a third of 30% of parents globally. At the same time, 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 and services, with very little regional variation in preference. These represent 57% in the US, 56% in China, 48% in the UK, and 41% in the UAE. Furthermore, 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.