A new Visa survey offers a fascinating glimpse into the consumption habits of Gen Z in Israel, aged 16 to 28. The data paints an interesting picture of a complete digital approach combined with a surprising loyalty to the in-store experience – all alongside social and environmental values that dictate consumer choices.
More than half of young people combine online shopping with browsing in stores, while only 12% limit themselves to online purchases. About a third still prefer the physical store, mainly due to the ability to receive the product immediately and the experiential feeling.
Food products, shoes, and household items are still areas where young people prefer to visit the shelf physically, whereas tickets for shows, vacations, and flights are mostly purchased online.
When it comes to payment methods, it is a real revolution. About 70% of respondents use digital wallets and payment apps, making dozens of transactions per month via their mobile devices. 95% of online shoppers prefer to pay by credit card, and in physical stores, credit is also the most common method.
However, Gen Z has not completely abandoned cash: 92% reported that they still use it, mainly for budget management and a sense of security, with an average of only NIS 130 on hand.
Artificial intelligence is becoming an integral part of the shopping journey. Almost 90% of respondents used AI tools – for price comparisons, gift ideas, or obtaining additional product information. Surprisingly, about half of them trust algorithm recommendations as much as advice from friends and family.
Social media also has a dramatic influence: About 70% of young people purchased products based on recommendations seen online, and more than half admitted to buying under the influence of influencers. Gender differences are evident here, as women tend to rely more on such recommendations compared to men.
The mobile phone is a central consumer tool – 81% of respondents see it as an integral part of the shopping process, and 74% feel uncomfortable being separated from it even for a few hours. Many make purchases while browsing, working, or engaging in other activities, making shopping almost constant throughout the day.
Finally, the value-driven aspect cannot be ignored.
Two-thirds of respondents believe their consumption habits can impact environmental change, and more than half prefer brands that promote social or environmental causes. A quarter even check the brand’s values before purchasing an expensive product.
Gary Lasky, CEO of Visa Israel, summarizes that Gen Z "is bringing the revolution that changes the rules of commerce and its future more than any other generation. At Visa, we are committed to providing experiences tailored to their needs, offering innovative payment solutions that ensure their shopping is convenient, enjoyable, and compliant with all safety standards."
Lasky added, "In a world that is increasingly digital and mobile-based, creating an online shopping experience that is both smooth and secure, combined with innovative solutions such as AI, will be key for businesses intending to remain competitive."