12:29 am - April 17, 2025
A Visa study reveals the under-30s spend an average of £305 monthly on subscriptions, outpacing older generations.
A recent study from Visa has revealed that Generation Z (ages 13-28) is leading the subscription economy in the UK, with 93% of surveyed individuals subscribing to at least one service and spending an average of £305 monthly.
This significantly outpaces spending habits of older generations, including Generation X (ages 44-59) who spend £91, and Baby Boomers (ages 61-79), who average £108 per month.
The findings indicate a pronounced generational shift in consumer behaviour towards subscription services, with the younger demographic willing to invest more than their elders in areas such as meal kits, wellbeing services, beauty products, plant subscriptions and snack boxes, according to the study.
However, the survey found that about 75 percent of respondents encountered negative experiences when managing their subscriptions or bills through direct debit, a concern that affects only half of the wider UK population. Common difficulties included unexpected charges, challenges in cancelling services and a lack of clarity around payments. The data also revealed that nearly 18 percent of Gen Z consumers faced failed payments, forcing them to navigate various pitfalls in subscription management.
Twenty percent of Gen Z respondents stating they have refrained from making purchases or acquiring new subscriptions due to past negative payment experiences. Furthermore, about 35 percent of Gen Z admitted to paying for unwanted services, and one in four missed cancellation windows, which can lead to unnecessary expenditures.
Mandy Lamb, Managing Director UK and Ireland at Visa, said: “We’re seeing a clear shift in how people spend their money, which opens up huge opportunities for the subscription economy and new business models. However, taking advantage of these opportunities hinges on delivering the right customer experience.”
Source: Noah Wire Services
- https://www.visa.co.uk/about-visa/newsroom/press-releases.3334742.html – This URL supports Visa’s involvement in research related to Gen Z financial habits and trends, indicating their role in shaping and supporting new business models within the subscription economy.
- https://savanta.com/knowledge-centre/view/gen-z-and-millennials-shaping-the-subscription-economy/ – This URL highlights the significant role of Gen Z and Millennials in the subscription economy, aligning with the generational trends and spending habits mentioned in the article.
- https://immigrantjustice.org/sites/default/files/content-type/resource/documents/2018-10/NIJC%20Asylum%20Manual_final%2007%202018.pdf – Although not directly relevant to the article’s claims, this URL does not support any information presented. It pertains to asylum and immigration proceedings, so alternative sources should be sought.
- https://startupsmagazine.co.uk/article-visa-reports-22-average-income-increase-gen-z-side-hustlers-over-past-year – This URL provides insight into Gen Z’s financial behavior and entrepreneurial ventures, which could be tangentially related to consumer spending habits and financial attitudes among this age group.
- https://www.noahwire.com – This URL could potentially house the source article but lacks specific information to corroborate the claims about the subscription economy and Gen Z spending habits.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative mentions a recent study but does not specify its exact date. However, it refers to future initiatives such as Visa’s Account-to-Account payments launch in 2025, indicating it is likely recent.
Quotes check
Score:
4
Notes:
The only quote is from Mandy Lamb at Visa, but without further context or reference, it is difficult to determine if this is a first-time use or not. No online sources could be found to confirm the original source or date.
Source reliability
Score:
6
Notes:
The narrative originates from A1 Retail Magazine, which is not a widely recognized publication like the BBC or Financial Times, but it seems to provide specific data from a reputable source (Visa’s study).
Plausability check
Score:
8
Notes:
The claims about Gen Z’s spending habits and the challenges with Direct Debit payments are plausible based on current trends. However, specific figures and outcomes could not be verified without direct access to Visa’s study.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents plausible findings likely based on a recent Visa study, but lacks a specific source date for the study itself. The quote from Mandy Lamb could not be directly verified. The overall trustworthiness is partially diminished by the lesser-known source and the reliance on data not directly cited.
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