What is Payment Tokenisation? Completed Guide

March 7 2025 | Blog

Did you know that payment tokenisation can reduce fraud risks by up to 60%? It's true. For years, tokenisation has been reshaping payment security across industries from e-commerce to banking and beyond. In today's time, with cyber threats on the rise, businesses must...

What is a White Label Payment Gateway? A Complete Guide

February 26 2025 | Blog

Are you an eCommerce business owner, SaaS provider, or payment professional looking to expand your services globally without building a payment gateway from scratch? A white label payment gateway might be exactly what you're looking for. White label payment gateways...

Payment Orchestration Trends | Stay Ahead in 2025

February 19 2025 | Blog

Payment Orchestration Trends to Keep an Eye on in 2025 February 19, 2025 Technology innovations, changing customer demands, and the rising complexity of global trade contribute to the payments landscape's extraordinary rate of change. As companies work to provide...

How Different Demographics Use Google Pay & Apple Pay

February 28, 2025

Mobile wallets like Google Pay and Apple Pay are becoming essential to global transactions as digital payments continue to advance. However, due to characteristics like age, location, financial level, and experience with technology, their adoption and usage vary considerably among different groups. Understanding these variations can help businesses optimise payment strategies and improve customer experiences.

Contents

Gen Z (18-24 years old): The Digital Natives

Gen Z has become accustomed to mobile wallets because they were raised in the digital age. Their inclination for digital payments is driven by convenience, quickness, and security. Many Gen Z customers make daily purchases using mobile wallets, especially for subscriptions, online shopping, and food delivery.

Preferred Use Cases: Peer-to-peer (P2P) transfers, app-based applications, and online purchasing.
Key Features They Value: Biometric authentication, one-tap checkout, and loyalty program integration.
Challenges: Due to their continued financial dependence on their parents, some Gen Z users may only be able to make small purchases using these wallets.

Millennials (25-40 years old): The Power Users

Among the most frequent consumers of digital payments are millennials, who were among the first to accept them. Whether they share bills, purchase online, or make in-store purchases, they value how easy it is to use Google Pay and Apple Pay.

Preferred Use Cases: In-app purchases, bookings for travel, meals, and regular payments (bills, subscriptions).
Key Features They Value: Budgeting tools, cashback and rewards, and contactless transactions.
Challenges: Despite their high level of engagement, some millennials still think about security and data privacy risks before fully committing to mobile wallets.

Gen X (41-56 years old): The Cautious Adopters

Despite being more hesitant to embrace new payment technology, Gen X users have adopted mobile wallets due to their security and ease. Apple Pay and Google Pay are frequently used with more conventional payment methods like credit cards and online banking.

Preferred Use Cases: Groceries, retail shopping, utility bill payments.
Key Features They Value: Security features, including fraud prevention, tokenisation, and smooth banking app interaction.
Challenges: Some Gen X users still prefer physical cards since they feel more in control of conventional payment methods.

Baby Boomers (57-75 years old): The Skeptical Users

For the most part, Baby Boomers have been slower in embracing digital payments because they still prefer cash, checks, and conventional credit cards. However, as smartphones become more widely used and knowledge grows, many Boomers are using mobile wallets, mainly for convenience and security reasons.

Preferred Use Cases: pharmacies, large retail establishments, and occasionally online shopping.
Key Features They Value: Fraud prevention, ease of use, and transparent customer support.
Challenges: Aversion to switching from traditional banking systems, security concerns, and unfamiliarity with mobile wallets.

High-Income vs. Low-Income Users

Income levels also play a significant role in how people use mobile wallets.

High-Income Users: Apple Pay is more likely to be used due to its integration with premium Apple products. They prefer mobile wallets for convenience, travel, and premium experiences such as VIP services and luxury shopping.
Low-Income Users: Often rely on Google Pay due to its accessibility across various Android devices. Many use it for everyday expenses, remittances, and discounts on essential goods.

Urban vs. Rural Users

The urban-rural divide impacts digital wallet adoption:

Urban Consumers: More frequent users, given the widespread availability of contactless payment terminals, e-commerce, and app-based services.
Rural Consumers: Adoption is slower due to limited access to reliable internet, fewer digital payment options, and a more substantial reliance on cash-based transactions.

Global Adoption Trends

Adoption rates of Google Pay and Apple Pay vary by region:

North America & Europe: High adoption rates due to widespread NFC infrastructure and digital banking penetration.
Asia-Pacific: Rapid growth, particularly in India, China, and Southeast Asia, where mobile wallets are becoming dominant.
Latin America & Africa: Slower adoption but growing due to increased smartphone penetration and financial inclusion initiatives.

Conclusion

To optimise payment strategies, merchants must recognise how different demographics use Google Pay and Apple Pay, influenced by factors like age, income, location, and tech familiarity. Tailor your offerings to address the unique needs of each group, prioritising seamless, secure, and accessible transactions. As mobile wallet adoption surges, leveraging insights into these demographic trends will be crucial for boosting customer satisfaction and driving business growth. Act now by analysing your customer data and aligning your payment solutions accordingly to capture this growing market effectively.