Millennials are now the largest consumer group, and Gen Z is rising in influence, so merchants are focusing less of their attention on baby boomer spending habits and optimizing their experiences. However, this could be a mistake. Many baby boomers enjoy financial stability, and at a time of economic uncertainty and fluctuating consumer confidence, they could be helping to keep the economy afloat. As of Q2 2024, the Federal Reserve estimates baby boomers’ wealth at $79.85 trillion. Furthermore, baby boomer spending habits span across diverse segments, such as travel, home improvements, hobbies, technology, and healthcare. Boomers also engage in lifestyle-oriented spending, for example making purchases according to their interests or needs, as well as community-focused activities or charity.
Another thing to keep in mind is that some baby boomers were born as recently as 1964, and are still several years from retirement. Many are vibrant businesspeople, community leaders, and influencers open to new technology that makes their lives easier and commerce more convenient.
How to Capture Baby Boomer Wallet Share
When deploying solutions for retail, restaurant, vending, or other merchant clients, ISVs and VARs shouldn’t recommend paper-based, low-tech processes for businesses with older clientele. Baby boomers are using technology. A Pew survey found 82% of boomers use digital devices, and 73% engage online.
They’re also open to new payment methods. A Zelle survey found that 51 percent of baby boomers have adopted peer-to-peer (P2P) payments. Although it’s less than the 75 percent of millennials and 69 percent of Gen X that use this payment method, it’s still a majority. That survey also found that baby boomers make payments and purchases online at the same rate (82 percent) as millennials and GenX. Boomers’ payment preferences, though, lean less toward smartphones for those transactions, with only 32 percent using mobile wallets. Retail apps appeal to this generation, with 40 percent using retail apps for shopping.
One of the drivers for changing baby boomer payment preferences is that these consumers don’t operate in a silo. Payments Canada, which reported tremendous growth in contactless payments in the early part of the decade, including 89% of consumers aged 55 and older, points out that younger consumers who were early adopters helped older relatives and friends learn to use new payment methods. Pew Research has found that baby boomers are open to embracing new technology, especially if they see that it improves their quality of life and offers value.
The Solution
Although ISVs and VARs shouldn’t pull back on recommending digital technology to businesses that cater to older consumers, they should advise businesses on best practices to implement them. Screens should be big enough so any consumer can easily read and navigate through them with minimal clicks. Touchscreens should be responsive and accurate to avoid errors that create transaction delays and poor customer experiences. Also, encourage merchants to factor in baby boomer preferences when designing omnichannel engagement so they don’t focus solely on a mobile app that their older customers may not use.
The best strategy is to engage in a variety of ways and accept a range of payment methods to give consumers of all ages their choice of how to complete their purchases. By finding the right formula, merchants can maximize revenues by capturing wallet share from every generation of shoppers.
Contact us to learn more!