By: Caroline Jemeli
I have observed
how my daughter makes payments, and it reflects a shift that is transforming
the global economy. Millennials and Gen Z are redefining digital payments,
driven by a desire for speed, accessibility and innovation. Their preferences
are creating a “touch, scan, go” culture powered by tap-to-pay and scan-to-pay
solutions, that are reshaping the way people think about money, access, and
financial inclusion.
What was once a
time-consuming process is now instant. A quick tap of a phone, smartwatch, or
contactless card at the checkout counter, or a simple scan of a QR code,
completes a transaction in seconds. No fumbling for cash, no waiting for
change, just seamless, secure and frictionless payments. These tools embody the
kind of instant gratification the youth have grown accustomed to in the digital
age.
Gen Z
particularly, are leading the charge, with data showing that 51% of them use
digital payment methods like mobile wallets and only 10% rely on regular cash
payments. For the youth, this ease of use is more than a convenience. It
represents empowerment. By lowering the barriers to making and receiving
payments, contactless technologies are opening economic participation, from
side hustles and freelancing to small business entrepreneurship.
Building
Sustainable Uptake
For digital
payments to remain attractive and sustainable, the ecosystem must evolve
alongside the youth's needs. Governments and regulators must create frameworks
that encourage investments and innovations in the sector. Payment service
providers must innovate the way payments are accepted. Fintechs must push
beyond current solutions to offer smarter, faster, and more inclusive options,
and businesses must embrace these solutions to remain relevant.
That is why
here at Network International (Network) we do not see payments as just
transactions. For us, payments are experiences. We enable payments that suit
your lifestyle, the way you live, whether you pay through card, mobile wallets
or online.
Kenya
illustrates both the progress and the gaps. Mobile money adoption is among the
highest in the world, with up to 52% of Kenyans using mobile money daily. Data
indicate that despite there being over 7.4 million MSMEs in Kenya, there are
only about 48,000 POS machines in use. This undercuts the potential for
inclusive, consistent payment acceptance.
Solutions such
as the Network POS, QR code payments, mobile payments and even Soft POS
technology by Network International address this gap by enabling merchants,
from local vendors to SMEs and large enterprises, to accept payments across
multiple channels: cards, mobile money, Apple Pay, Samsung Pay, and more. For
consumers, it means confidence that, whether buying vegetables, a concert
ticket, or paying for transport, their preferred payment option will be
accepted.
For our younger
demographic, it means they can make payments without the fear of being left out
because a merchant does not accept a form of payment. It opens payments for
merchants who do not have to lose business from a customer who has gone fully
digital or from a foreigner who does not have local currency at hand. For
Early Adopters,
the Future is Brighter
In digital
payments, AI is increasingly playing a role in enhancing the payment
experience. From powering fraud detection systems that learn and adapt to
suspicious patterns in real time, to enabling personalised payment
recommendations and seamless customer support through chatbots and biometric
data screening, AI is making transactions safer, smarter, and more
user-friendly.
It is also
helping merchants optimise checkout processes and offering predictive insights
into consumer spending habits, ensuring that the payment journey is not only
secure but also tailored to the needs of today’s fast-paced, tech-savvy users.
Wearables: The
Next Frontier
We are also
seeing the rise of wearable technology being integrated to enable payments.
Apple has enabled its customers to make payments with a simple tap using their
Apple Watches on Apple Pay. The same applies to Google Wallets through smart
watches. A newer trend is the use of payment rings to make contactless payments
through near-field communication (NFC)-enabled rings. Because they are swift
and contactless, their growth is projected to exhibit a compound annual growth
rate of 19.3% between 2025 to 2032.
Network
International is a partner for every business and customer who cares for bold,
fast and convenient payment solutions because no matter who you are or where
you are, payments should work.
What feels
revolutionary today will soon be the everyday norm, provided businesses,
regulators, and innovators continue to design with youth at the center. The
younger generation is not just adopting new payment systems; it is rewriting
the rules of commerce for everyone.
The writer is
the Regional Head of Marketing, Merchant Services, Africa at Network
International.
