London, 5 February 2025: Millennials, many now in their peak earning years, and Gen Z, an emerging spending powerhouse*, are driving a shift toward ‘accessible luxury’ - prioritising quality, sustainability and secure, seamless shopping experiences.
New research by Tink, a market-leading payment services and data enrichment platform, reveals how over 2,000 UK consumers and over 500 UK high-end merchants** are navigating economic challenges and evolving customer expectations at the higher end of the market.
According to Tink’s data, Gen Z and millennials are purchasing the largest share of luxury items - averaging 16 and 14 items per year, respectively - representing a significant market opportunity for high-end merchants. But with ongoing cost-of-living pressures, consumers are becoming more discerning with their purchases, opting for products that combine quality with ethical production.
Luxury is also about the buying experience, as well as the item itself, for 62% of Gen Z and 68% of millennials surveyed. A streamlined payments experience is a critical element of the shopping journey, and in response, 85% of merchants surveyed are now focused on delivering a seamless and secure payment experience.
Reputation and trust: key drivers for purchases
Around three-quarters (73%) of millennials and 64% of Gen Z surveyed want to invest more in quality purchases that will last. Sustainability also plays a key role in decision making, with the majority of Gen Z (63%) and millennials (62%) willing to pay more for ethically made items.
Three-quarters of both Gen Z (76%) and millennials (75%) are also willing to pay more for the reputation of the brand, reflecting the importance of trust - particularly in areas like payment security - in their purchasing decisions.
Lucy Grant, Tink Commercial Strategy Director, said: “Understanding the evolving preferences of Gen Z and millennial shoppers is key for merchants looking to stay ahead in the high ticket and luxury market. These high-value customers demand more than just a premium product, they expect an exceptional experience, from sustainability and quality, to seamless and secure payments.”
Payments: The foundation of a luxury experience
Tink’s data shows that for Gen Z (58%) and millennials (64%) who shop for high ticket and luxury goods, payment security is a top concern.
This apprehension translates into hesitation, with over half of Gen Z (56%) and millennials (52%) from the same cohort reluctant to make high-value online purchases due to a fear of payment failure and fraud.
In response, over two-thirds (68%) of high-end merchants plan to enhance their payment systems in the next year to meet these demands.
When shopping for high ticket and luxury goods, younger shoppers value transparency and security. Tink’s research shows that 36% of Gen Z and 42% of millennials want a payment method with no hidden fees, while 34% of Gen Z and 38% of millennials demand one that minimises fraud.
Lucy Grant continued: “Trust and brand reputation have never been more important for consumers when parting with their hard-earned cash, so it's essential that merchants give shoppers peace of mind when it comes to making high-value purchases. By investing in modern payment solutions, such as Pay by Bank, high-end merchants can offer a secure, trusted checkout option – with authentication happening in the customer's familiar bank environment.”
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**High end merchants are defined as merchants (senior management level or higher) who sell higher price point items in businesses they describe as ‘luxury’ or ‘higher end’
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Notes to editor:
Merchant research was conducted by Censuswide on behalf of Tink between 25/10/2024 and 01/11/2024 amongst 501 higher end merchants.
Consumer research was conducted by Censuswide on behalf of Tink between 25/10/2024 and 28/10/2024 amongst a nationally representative sample of 2,010 consumers aged 16+ in the UK. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
Case studies, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Tink and Visa does not make any warranty or representation as to the completeness or accuracy of the Information within this document, nor assume any liability or responsibility that may result from reliance on such Information. The Information contained herein is not intended as legal advice, and readers are encouraged to seek the advice of a competent legal professional where such advice is required.
About Tink:
Tink, A Visa Solution, is a market-leading open banking platform serving some of the world’s largest financial institutions. Tink provides payments, banking, and lending solutions that power the new world of finance – whether that’s initiating account-to-account payments, onboarding new users, enabling better risk decisions or creating engaging money management tools. A wholly owned subsidiary of Visa, Tink was founded in Stockholm in 2012. Today, Tink and Visa’s open banking solutions are present in 20 markets, with 13,000 connections to financial institutions. Tink enables its partners to offer data-driven experiences that help eliminate complexity for millions of consumers across the globe. For more information visit tink.com.