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Study Shows Gen Alpha’s Growing Impact On The Digital Economy
Tech-savvy children aged 8-15 are reshaping global shopping and payment trends through their heavy use of social commerce and digital tools.
A new study commissioned by Checkout.com, a global leader in digital payments, shines a spotlight on Generation Alpha (kids aged 8-15) and their increasing role in shaping the digital economy. Conducted across the UAE, UK, US, and China, the research dives into how these young consumers are influencing spending trends and reshaping commerce through technology and social media.
UAE’s Gen Alpha: Online Shopping And Gaming Enthusiasts
In the UAE, Generation Alpha is particularly adept at navigating today’s digital-first economy. The research reveals their heavy reliance on social platforms for shopping, with younger buyers gravitating toward social commerce. While 54% of millennials tend to stick to direct-to-consumer websites, 51% of Gen Z prefer shopping directly through social media.
The gaming sector is another area where the UAE’s young consumers are taking the lead. Children in the UAE spend 47% of their allowances on e-gaming, far surpassing the 28% spent by their peers in the UK, US, and China.
High-Value Purchases On The Rise
Parents’ spending on high-end items is soaring too. The report notes a 46% surge in luxury goods purchases and notable increases in home appliance and travel purchases. This trend signals a rebound in consumer confidence, particularly in recently hard-hit areas like tourism.
Interestingly, UAE kids are not just passive beneficiaries of parental spending. The study reveals that 75% of 8-year-olds and 92% of 15-year-olds in the UAE make purchases independently, often through digital platforms.
Buy Now, Pay Later Gains Traction
The research uncovers a surprising trend: a growing number of UAE children over 13 opt for “Buy Now, Pay Later” (BNPL) services. While still a small percentage (11%), this points to how younger generations are embracing alternative payment methods early on.
Global Insights: Social Commerce And Digital Influence
Globally, Generation Alpha influences about 27% of household spending, with digital purchases accounting for nearly a third of that figure. Parents increasingly buy digital products, such as educational tools and streaming services, with 47% prioritizing online learning resources.
Social media remains a dominant force in shopping habits. Across all regions, children use platforms like Instagram and TikTok to discover deals, with preferences varying slightly between countries. In the US, 57% of young shoppers rely on social media, compared to 41% in the UAE.
Physical stores, meanwhile, are becoming less popular. Just 35% of Gen Z worldwide shop in brick-and-mortar stores regularly, further underlining the shift to digital channels.
A Blueprint For Future Commerce
“Generation Alpha is playing a major role in the digital economy,” says Rory O’Neill, Chief Marketing Officer at Checkout.com. “Businesses must pay close attention to evolving customer preferences to stay competitive in this rapidly changing market”.
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Checkout.com Set To Launch Card Issuing In The UAE
The payment service provider’s expansion is a first-of-its-kind investment and could reshape digital transactions across the region.
Checkout.com is laying the groundwork to become the first global payments platform to introduce card issuing in the United Arab Emirates — a move that could reshape how businesses in the region manage financial transactions.
The company plans to roll out its domestic card issuance offering in the UAE by 2026, subject to regulatory approval. The launch would give businesses the tools to issue both physical and virtual branded cards. This, in turn, opens up new ways to reward customers, streamline expense processes, and handle B2B payouts efficiently.
Checkout.com’s CEO and Founder, Guillaume Pousaz, revealed the plans during Thrive Abu Dhabi, the firm’s debut conference in the Emirates. Joined on stage by Remo Giovanni Abbondandolo, General Manager for MENA, Pousaz presented to an audience of over 150 partners and merchants at Saadiyat Island. Also in attendance was H.E. Omar Sultan Al Olama, the UAE’s Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications.
Abbondandolo highlighted the strategic importance of the announcement: “As a global business, we focus on bringing products to markets that our customers want and need. Today’s announcement is proof of our commitment to the MENA region and its rising influence in the digital economy. The appetite for innovation here is real, and we’re proud to be building the infrastructure that powers it”.
One early adopter of Checkout.com’s UAE acquiring services is Headout, a travel experiences marketplace, which recently named the payment provider as its main partner in Europe. The company has already begun card issuing there and is keen to expand that offering into MENA once approval is granted.
The expansion of services in the UAE and beyond builds on Checkout.com’s track record in the region. It was the first global payments firm to secure a Retail Payment Services license from the UAE’s Central Bank and was instrumental in rolling out Mada and Apple Pay in both the UAE and Saudi Arabia.
Also Read: Protecting Your WhatsApp Account From Hackers: Kaspersky Expert Tips
The firm has also been rolling out new products: One of the latest is Flow Remember Me, currently in beta testing. It allows shoppers to store their card information once and access it across Checkout.com’s entire network, potentially cutting checkout times by up to 70%.
Earlier this year, Checkout.com also introduced Visa Direct’s Push-to-Card solution in the UAE, enabling both domestic and international payouts. Its collaboration with Mastercard has grown as well, making it easier for businesses to send funds directly to third-party cards securely and quickly.
With regional tech ambitions on the rise — spurred by initiatives like Saudi Arabia’s Vision 2030 and the UAE’s 2031 Agenda — Checkout.com sees its role as one of a key enabler. “Our mission is to help ambitious businesses navigate the complexity of payments, so they can move faster, go further, and make the most of every opportunity,” said Abbondandolo. “In MENA, performance is personal. It’s local. It’s built on trust. And when payments perform, businesses thrive”.
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