Generation Z keep away from going to the retailers due to ‘checkout panic’

People in Generation Z are ditching going to the shops because of ‘checkout panic,’ new findings have claimed.

Younger shoppers said they feel embarrassed or worried that something will go wrong, such as their card being declined or being asked to enter their Pin.  

Sixty-three per cent of Gen Z, aged between 14 and 29, said they would walk away from the checkout and abandon their purchase if their card failed, when asked by the card machine company Zeller. 

This was compared to just 21 per cent of those aged between 62 and 80, known as Baby Boomers. 

And 48 per cent of young Gen Z respondents, born between 1997 and 2012, said they felt ‘confused’ when asked to enter their pin in a shop when making a card transaction, compared to 18 per cent of Baby Boomers. 

This may be because they are used to paying via a card stored on their phone, where a Pin isn’t usually required.  

Three-quarters of 14-29s said they felt ’embarrassed’ when their card was rejected at a checkout, though this was even higher for those in the Millennial age group, aged 30 to 45, of whom 82 per cent agreed with the statement. 

Payment problems: An analysis has suggested people in the Generation Z age category are ditching shopping in physical stores due to ‘checkout panic’

Zeller suggests that negative payment experiences in shops are turning more younger people towards alternatives, such as online shopping. It claims this problem ‘could could the high street millions’. 

Data suggests it is already struggling. Sales of goods other than food were ‘tepid’ in March, rising just 0.9 per cent year-on-year in March, according to the British Retail Consortium, below the 12-month average of 1.1 per cent.

The BRC said the outlook for the retail sector was ‘uncertain’, even amid a temporary ceasefire in the Middle East.

Lars Weber, managing director at Zeller, said: ‘For customers, paying should feel effortless. 

‘When it doesn’t, those final seconds at the card machine can undo an entire experience a business has worked hard to deliver.’

Three-quarters of both Gen Z and Millennial respondents surveyed said they felt a ‘split-second panic’ if payment problems occurred in a shop, compared to 52 per cent of people aged between 62 and 80. 

And seventy-three per cent of Millennials said they felt worried about holding up a queue if an in-store transaction went wrong, compared to 53 per cent of Baby Boomers. 

Fifty-six per cent of Gen Z and Millennial shoppers said they would be unlikely to return to a retailer after a ‘bad’ payment experience.  

Many online-based retailers are also vying to make payments quicker for shoppers.  

Last year, around 25 million transactions were processed in the UK every month by Pay by Bank – a new payment method which is supposed to be quicker and easier than entering your card details.

Businesses – and even state organisations such as HMRC and NS&I – are using it.

However, if you use Pay by Bank, you lose the consumer protection you normally get from a credit or debit card.

Firms have a vested interest, as Pay by Bank processing fees are cheaper than card transactions.

Other retailers using Pay by Bank include Amazon, Ebay, Just Eat, Papa Johns and Ryanair. While it is typically used for online transactions, it is possible to use it in shops via QR codes, although this is not yet the norm.