Dubai, UAE: A groundbreaking study by Checkout.com has revealed that three out of four eight-year-olds in the UAE now make online payments independently, reflecting the rapid rise of Generation Alpha's influence in the digital economy. Furthermore, 92% of 15-year-olds in the country shop online without requiring parental assistance.
Gen Alpha Driving Digital Commerce
The study, conducted across the UAE, UK, US, and China, sheds light on the consumer habits of Generation Alpha—children born after 2010—and their role in shaping the future of e-commerce. In the UAE, this tech-savvy generation leads the way in digital spending, especially on e-gaming, with 47% of their allowances directed towards gaming services. By comparison, children in other countries like the UK, China, and the US allocate just 28% of their allowances to games.
Shift in Consumer Behavior
The report highlights the evolution of shopping preferences across generations. While 54% of millennials shop on direct-to-consumer (D2C) websites, 51% of Gen Z consumers favor social commerce, shopping directly through platforms like Instagram and TikTok. Gen Alpha is following suit, using social media not just for product discovery but also for making purchases.
Social commerce is emerging as a dominant shopping channel globally, with Gen Alpha in the UAE showing a 41% preference for finding deals through social media platforms, slightly lower than the US (57%) and China (56%).
Buy Now, Pay Later Gains Popularity Among Gen Alpha
The study also reveals an intriguing trend among UAE children aged 13 and above: the growing adoption of "buy now, pay later" (BNPL) payment methods. Around 11% of Gen Alpha respondents in the UAE expressed a preference for this option, reflecting the rise of flexible payment systems even among young consumers.
Digital Spending on the Rise
Globally, Generation Alpha contributes to 27% of household monthly spending, with their influence rising to nearly a third for digital purchases. Parents are increasingly spending on educational resources (47%) and entertainment streaming (30%) for their children, emphasizing the importance of digital products in modern households.
In the UAE, consumer spending intentions are also shifting toward high-end purchases. The study found a 46% increase in luxury goods spending, a 30% rise in whitegoods purchases, and a 25% increase in planned flight bookings, signaling a strong rebound in travel and tourism.
Expert Insights on the Future of Commerce
Rory O’Neill, Chief Marketing Officer at Checkout.com, commented on the findings: “It’s clear that Generation Alpha is playing a major role in the digital economy. They are not just using social channels for product discovery but actively purchasing through these platforms. Businesses must adapt quickly to cater to these emerging preferences and payment behaviors to remain competitive in the fast-changing market.”
