New research: Gen Z driving demand for payment transformation in health and wellbeing businesses

A new report has revealed that health and wellbeing businesses need to make significant changes to their business operations to meet the expectations of Gen Z.

The report, published by payments solutions provider Access PaySuite, highlighted the importance of providing customers with a range of options, which has increased in importance due to the challenging economic climate.

Almost one in three (30%) respondents to a Censuswide survey commissioned by Access PaySuite reported a negative experience when purchasing health and wellbeing services or products as a result of limited payment options.

The research showed that online and in-person cash payments are the most popular ways to pay, while  over a quarter of consumers want to pay via Direct Debit. A further 17% prefer to pay via a mobile app when booking, followed by mobile in-person such as Google Pay (14%) and over the phone (13%).

When paying for health and wellbeing treatments and/or services, which, if any, of the following payment method(s) would you prefer to use the most? (Please tick up to three)

Unsurprisingly, generational differences play an important role in the choice of payment methods. Almost 30% of Generation Z (those born between 1997–2010) would rather pay online, compared to less than 6% of the Silent Generation (those born between 1928–1945). Digital platforms are particularly important for those younger demographics.

Statistics from UK Finance show three in ten adults are registered for mobile payments, but that rises to 54% and 48% for 16-24 and 25-34 year olds respectively.

Open Banking UK data also shows that one in ten British consumers are active users of open banking and Gen Z is a key demographic within this uptake. Wider research from TransUnion shows that 42% of Gen Z have used open banking.

Commenting on the findings, Andrea Dunlop, managing director of Access PaySuite, said:

“It’s no surprise that the ongoing economic difficulties consumers are facing means that many are already weighing up the affordability of health and wellbeing treatments or products. Households are having to make difficult choices about where they spend their increasingly stretched disposable income.”

“Our findings highlight the challenges facing businesses in the health and wellbeing sector and businesses need to keep up with consumer expectations around payments. For businesses that can have a transformative impact on the day-to-day lives of their customers, it’s even more important to remove barriers to sale.”

“Almost one in three consumers (30%) want the option to spread their payments, and many expect a range of convenient payment options which suit their needs. Online and mobile payments are moving from being a ‘nice-to-have’ to becoming essential for daily operations.” For more information read the full Access PaySuite report ‘People first payments: How health and wellbeing businesses can cut costs and drive growth’ here: https://www.accesspaysuite.com/form/how-healthcare-and-wellness-businesses-can-cut-costs-and-drive-growth/