Study Shows Gen Alpha’s Growing Impact On The Digital Economy

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”.