Generation Alpha, the generation of those born in 2010 onwards, have been exposed to technology from an extremely early age. They have grown up with it, resulting in many interacting with digital services seamlessly. To get a better understanding, Mastercard, the payments giant, has published research on how Gen Alpha parents are responding to their kids’ digital financial experiences in the Asia Pacific (APAC) region.
Mastercard revealed that the traditional idea of parents showing their children the world of finance was being flipped on its head, as its research revealed that 47 per cent of APAC Gen Alpha parents have been shown new, digital financial tools by their children.
Children in the region have become so accustomed to these new services that many parents (72 per cent) anticipate the new generation will never own a physical wallet or carry cash. Mastercard’s research also found further reasoning behind this, revealing that 94 per cent of Gen Alpha children already have access to a financial account. Additionally, over half (58 per cent) already have digital wallets, 49 per cent have investment accounts and 48 per cent have credit cards.
With so many children already having experience with new digital tools, the Mastercard research reveals parents cannot be idle and are actively needed to keep up with the latest trends, as 53 per cent revealed they thought their children knew more about new payment methods than they did. Specifically, it found that 63 per cent of parents believe their kids are more financially savvy than they were at the same age.
With so many changes taking place in the financial sector, 60 per cent admitted that they were unsure if their financial knowledge even applied to their children’s generation anymore. Nonetheless, the majority of parents (82 per cent) still wished there were more tools available to teach their kids about finances.
Sandeep Malhotra, executive vice president, core payments, Asia Pacific, Mastercard, said: “To truly connect with Gen Alpha — and their parents — the payments sector needs to speak their language. These kids aren’t here to play — they’re here to slay, save, and spend smart. They’re low-key money bosses, tapping phones before they can tie shoes and turning budgeting apps into their playground. Cash? Not their go-to. Today, it’s all Tap & Go.
“For banks and FIs, the signal’s loud and clear: Gen Alpha expects payment experiences that match their vibe — seamless, savvy, and built-in from day one. Think custom digital wallets, in-app payments that just flow, and secure tools that level up as their finance game evolves.”
Taking a step back and looking at all generations
With the rise of digital wallets, mobile payments and virtual accounts, APAC families are calling for smarter, future-ready solutions that will set their children up for success. This gives visionary banks and financial institutions an opportunity to pave the way by delivering digital tools that not only simplify money management but also support how children learn about finances.
For instance, Gen Alpha parents are showing strong interest in features like educational content (67 per cent), parental controls (57 per cent), seamless account transfers (55 per cent), real-world learning simulations (48 per cent), and gamified experiences (43 per cent).
Organisations shouldn’t just focus on the youngest generation, though. Mastercard’s research also explored the attitudes of older APAC generations towards innovation.
More than half (53 per cent) prefer using new and innovative payment methods — such as Tap & Go mobile payments, biometric payments, QR codes and mobile wallets — over traditional methods like cash or manual card entry, reflecting a widespread appetite for innovation.
This compares to just 25 per cent in North America and 24 per cent in Europe, underlining APAC’s receptivity to adopting emerging digital payment solutions.
Yet, this enthusiasm isn’t evenly distributed across the region:
Regional breakdown
Seventy per cent of consumers in Vietnam prefer new payment methods, while only 35 per cent in Japan do, with the percentage even lower in Australia (25 per cent).
Several factors contribute to this trend: markets like Vietnam, Indonesia, and Malaysia are leapfrogging straight into mobile-first ecosystems, while more developed economies such as Australia and Japan still rely heavily on more entrenched payments infrastructure like physical cards and cash.
This paradox extends to emerging technologies: Although 86 per cent of APAC consumers are keen to use AI to manage their finances — particularly for fraud detection, payment automation, product personalisation and predicting financial outcomes — eagerness varies across markets. In Australia and Japan, interest in AI is focused on practical applications like security rather than financial planning or personalisation.
These differences highlight the need for financial innovations that are relevant by design, not retrofitted from legacy systems. That’s why Mastercard is investing in mobile-first and agentic AI-powered experiences like Agent Pay — which support decision-making at every step of the commerce journey.
Demand for customisable payment options
As payment options grow, consumers are seeking hyper-convenient ways to manage money that fit seamlessly with their digital usage habits. They want flexibility to customise how they pay, tapping into digitally native methods like peer-to-peer or peer-to-merchant payments, QR codes, wearables and social commerce.
Super apps are the new baseline: 70 per cent of APAC consumers use or want all-in-one apps to manage payments, shopping, and more, with Indonesia (86 per cent) and China (84 per cent) leading the pack. As these platforms become mainstream, payment tools must meet consumers where they already are — not the other way around.
Social shopping is shaping commerce: 39 per cent of APAC consumers have bought through chat or social apps, with China (61 per cent) and Vietnam (56 per cent) in front. More than three in five consumers (64 per cent) say influencers now shape their buying decisions. Embedding seamless payments into digital leisure spaces like social media apps is key to enabling this shift from browsing to buying.
Trust and security are top of mind: While 74 per cent of APAC consumers see biometric payments as more secure than traditional methods, 78 per cent are concerned about who has access to their data. This tension highlights a broader challenge to simplify security without sacrificing control and convenience. Mastercard solutions like tokenisation, Payment Passkeys and AI-driven authentication help bridge this trust gap.
“Gen A’s not just watching trends, they’re setting them—and if your brand isn’t flexing in their digital wallet or showing up in their feeds, you’re basically invisible. They vibe with brands that keep it authentic, ethical, and super aesthetic. And here’s the real flex: when money tools are intuitive and secure, they don’t just manage spending—they build confidence. That’s when innovation hits different,” added Malhotra.
