Checkout.com Shows Gen Alpha's Influence On Digital Economy

Checkout.com, a global digital payments provider, has unveiled a study revealing key insights into Generation Alpha (aged 8-15) in the UAE, exploring their growing influence and spending power. Spanning the UAE, UK, US, and China, the research revealed how technology and social media are transforming buying habits and shaping the future of consumer behavior. 

In addition to charting the behavior of Gen Alpha, the findings reveal shifts in the shopping habits of millennials (aged 28–43) and Gen Z (aged 12–27). While 54 percent of millennials stick to direct-to-consumer websites, a significant 51 percent of Gen Z is embracing social media platforms for their shopping needs, signaling the rapid rise of social commerce. In fact, social commerce has solidified its place as the top shopping method for Gen Z globally, with only 35 percent opting for traditional brick-and-mortar stores, according to the report.

The study also documented a surge in global consumer spending on luxury and high-ticket items, with a 46 percent rise in luxury goods purchases, a 30 percent increase in white goods, and a 25 percent jump in planned flight bookings, signaling a strong rebound in both travel and tourism. 

Gen Alpha in The UAE 

In today’s digital age, factors like technology and social media are increasingly shaping how consumers make purchasing decisions, reports Checkout.com. 

The study indicates that Generation Alpha in the UAE is at the forefront of the e-gaming trend, with 47 percent of those surveyed dedicating their allowance to games — far surpassing their peers in the UK, China, and the US, where children spend just 28 percent. 

Beyond benefiting from their parents' spending, the study finds that children in the UAE are taking charge in the digital economy, with 75 percent of 8-year-olds and 92 percent of 15-year-olds making payments independently, without the help of an adult. 

It further reveals the growing trend among Generation Alpha in the UAE over the age of 13 to use “buy now, pay later” (BNPL) as a payment method, with 11 percent of them showing a preference for this option. By comparison, only 7 percent of their peers in the United States, 19 percent in China, and less than 1 percent in the UK are opting for BNPL. 

Global Trends 

The study reveals that Generation Alpha influences over 27 percent of their household's monthly spending, with nearly a third going to digital purchases. Meanwhile, 29 percent of millennial parents are responsible for buying digital products for their children each month. This shift highlights how digital products and services now account for more than 21 percent of the average global household spend. 

Generation Alpha’s biggest impact on purchasing decisions is in online educational resources, with nearly 47 percent of parents investing in these for their children, according to the study. Entertainment platforms follow closely behind, with 30 percent of parents globally choosing to subscribe to these services for their children. 

It also shows how social commerce is quickly becoming the go-to shopping channel for Generation Alpha, with children and teens around the world turning to social media to find the best deals. While preferences vary slightly by region — 57 percent in the US, 56 percent in China, 48 percent in the UK, and 41 percent in the UAE — the trend is unmistakable. 

In a statement on the growing trends among Gen Alpha, Rory O’Neill, chief marketing officer at Checkout.com said, “It’s clear that Generation Alpha is playing a major role in the digital economy. The younger generation is going beyond using social channels for discovery but purchasing through these platforms. We're seeing this unfold in China, which should always be considered the blueprint for future commerce. Additionally, businesses need to pay close attention to customer preferences for payment across all generations in order to drive growth and loyalty in this fast-changing and competitive market.”