E-wallets and digital apps make Gen Zs spend more money, 25% feel pace of tech adoption too fast

SINGAPORE — Born digital natives, the Gen Zs are known to be the generation surrounded by smart devices, social media, and instant connectivity since birth. Exposed from an early age, they often demonstrate a natural aptitude in using digital devices, mobile applications, and online platforms.

Yet, a new study found that while most zoomers in Singapore find the pace of tech and app adoption just right (71 per cent), a smaller subset feel (25 per cent) feel the pace is too fast.

"The Clicks and Shifts: Yahoo Singapore Digital Study" commissioned by Yahoo Southeast Asia and conducted by Milieu Insight in February 2024 analysed the attitudes and behaviours of 1,500 users concerning mobile apps and digital services.

Released on 2 April, the study also found that mobile e-wallets and digital payment services were the top payment method for Gen Zs (38 per cent).

Gen Z also had the largest increase in spending after embracing new technology, with 29 per cent spending more since using mobile payment apps and digital services.

What could be behind Gen Zs spending more after picking up new technology? Are there concerns they have when using mobile apps and digital services? Yahoo spoke with some Gen Zs for their opinions on the matter.

More Gen Zs are spending more due to the convenience of tech

For some zoomers, the convenience of e-wallets and digital services is reason enough to spend more.

"I spend more because it’s convenient. I don’t need to bring my wallet out, and don’t need to fish for cash," said Phoebe C, 25, who uses her phone for almost all purchases, unless at cash-only establishments. Most of her expenditure is on food and transport.

Meanwhile, Nadhirah, 26, admits that the ease of swiping and scanning for payment tends to cause her to "lose sight of how much I have".

Previously, she would only spend around 15 to 20 per cent of her income. This has now increased to an average of 25 percent, with her "wants spending" limited to about 30 per cent of her monthly income.

In the same vein, both Vanshika Rai, 18, and Benjamin Hay, 23, have higher expenses.

"I find that I spend more because I don’t always check my account balance after every transaction. It doesn’t feel like I’m losing money. However, when I use physical cash, I can see and feel the money I’m spending," said Vanshika.

"Not having to visit the ATM to spend money makes shopping even more effortless," said Hay, who has grown comfortable with not counting change.

On the other hand, the accessibility of payment apps has made Natania Angel Tunn, 18, more conscious of her spending.

"I always check my account balance when I open my bank app to make a transaction. Sometimes, I stop myself from going through with the transaction," she said.

Not all Gen Zs keep pace with tech

The zoomers Yahoo spoke with remain concerned about the speed at which mobile apps and digital services are advancing, and how it might impact those who are not as digitally proficient.

Although Phoebe appreciates the convenience, she feels less tech-savvy people may struggle with using or transitioning to using technology, like chatbot ChatGPT and artificial intelligence AI in customer service.

Similarly, Vanshika found that although processes are more efficient where "almost everything can be done online", she agrees it may be a disadvantage for those who are not as tech literate.

Meanwhile, although a part of Gen Z, Nadhirah finds it hard to keep up with new apps and digital services.

"Personally, some of it can be more tedious for me, so I normally only go for things that make life easier. I only find out new apps and digital services through my friends, and I usually find them more savvy than what I’m used to."

"I also can’t imagine how the older generation is dealing with how fast tech is advancing. It must be very frustrating and scary for them," she added.

Nadhirah's parents, who are in their 50s, struggle with Singpass updates or using apps like DBS PayLah!.

"They rely on going to banks physically. I’ve also had to help my aunt apply for debit cards online, she wasn’t sure how to go about it."

On the contrary, Tunn finds that digital services and apps have not advanced much.

"With the rise of AI, many apps have turned to using it for the sake of efficiency. But, I find that crucial digital service apps have yet to incorporate much of it."

Likewise, Hay has not noticed a "tremendous change" in the way he interacts with apps and mobile services.

While recognising that banking and government apps have made decent strides in implementing new changes, Hay has instead observed more physical stores directing customers to download apps to access benefits and rewards.

Service breakdowns, scams still an area of concern for Gen Zs

Even though they generally find apps and digital services by the government and credible banks to be secure, the zoomers Yahoo spoke with are mindful of service breakdowns and security risks.

Although Hay generally feels secure about apps not leaking his data and information, incidents like last October's bank service disruptions have made him realise the drawbacks of using digital platforms.

When DBS, Citibank and selected ATMS were out of service last October, he was unable to use Apple Pay for his bus ride, and had to resort to paying with a physical debit card.

Besides the risk of payment systems going down, the looming cybersecurity threat of scams also weighs on the minds of Gen Z.

"Attacks can happen anytime. Some of these scams are getting so realistic that even people our age fall for it, before realising something is amiss," said Nadhirah.

Rising scam cases also make older folks more fearful to do anything online without assistance from someone younger, she added.

Apps developed directly by banks, as indicated on the App Store, feel more safe because of existing trust in the bank, said Phoebe.

"We trust that banks won’t promote use of something that would be bad for their customers. It gives the assurance that the apps are official," she said.

Although certain apps provide a greater sense of security, with additional authentication steps like two-factor authentication (2FA), Phoebe is aware that the tools available to scammers are also getting more sophisticated.

"It seems like our scammers are also getting more advanced since scamming seems more prevalent and common these days," she said.

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