Analysis of Mobile Payment Behavior Patterns Among Millennials and Z Generations: Implications for Marketing Strategy

Abstract

This study analyzes the behavioral patterns of mobile payment use among Millennials and Gen Z and its implications for developing marketing strategies. Using an explanatory quantitative approach and involving 385 respondents, this study examined the relationship between frequency of use, security and privacy, user experience, and the effectiveness of marketing strategies. Data analysis using Structural Equation Modeling (SEM) with mediation effect testing adopted the framework of Roa et al. (2022) and Lu et al. (2019). The results showed a significant favorable influence between the frequency of mobile payment use and security aspects on the effectiveness of marketing strategies. User experience is a partial mediator in the relationship, with a Variance Accounted For (VAF) of 60.3% for usage frequency and 57.4% for security. Significant differences were found in usage patterns between Millennials and Gen Z, where Gen Z showed a higher transaction frequency for small-value purchases. In comparison, Millennials tended to make higher-value transactions with a lower frequency. This research contributes to developing the theory of digital payment technology adoption and provides practical implications for optimizing generation-based marketing strategies.