Gen Alpha (the digital-first generation born 2010 onwards) isn’t waiting to grow up before engaging with money — they’re already making their mark on the world of digital finance.
In Malaysia, new research from Mastercard shows that 97 per cent of Gen Alpha children[1] already have access to a financial account[2], while many hold digital wallets (46 per cent), investment accounts (40 per cent), and debit cards (40 per cent).
Half (50 per cent) of parents say their Gen Alpha children are more financially savvy than they were at the same age, with 40 per cent saying that their children know more about new payment methods than they do.
Malaysia’s Gen Alpha is growing up in a digital-first environment, where mobile wallets are already the norm—driving one of the highest digital wallet penetration rates in Southeast Asia at around 40 per cent[3]. From an early age, Malaysia’s Gen Alphas expect seamless, tech-enabled payment experiences across all touchpoints. As trends like ‘shoppertainment’ gain traction—blending in-app interactivity, AR/VR commerce, and real-time entertainment—Gen Alpha is poised to favour brands that integrate immersive content with frictionless digital payments.
Preparing Gen Alpha for a digital-first financial future
In Malaysia, parents of Gen Alphas anticipate their children will grow up in a digital-first financial world—one where they may never own a physical wallet (62 per cent) or carry cash. And while parents of Gen Alpha kids feel prepared to teach their children about foundational financial concepts, they are less confident when it comes to more complex financial topics:
- 51 per cent feel that it is getting increasingly complicated to teach their children about finances.
- 54 per cent are unsure that their financial knowledge applies to their children’s generation.
- 79 per cent wish there were more tools available to teach children about finances.
With the rise of digital wallets, mobile payments and virtual accounts, Malaysian families are calling for smarter, future-ready solutions that will set their children up for success. This allows visionary banks and financial institutions 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 in Malaysia are showing strong interest in features like educational content (73 per cent), parental controls (73 per cent), seamless account transfers (57 per cent), real-world learning simulations (45 per cent), and gamified experiences (42 per cent).
Beena Pothen, Mastercard’s country manager for Malaysia and Brunei, said, “These findings highlight the remarkable pace at which Malaysia’s youngest generation is embracing digital finance. With 97 per cent of Gen Alpha children already accessing financial accounts and nearly half using digital wallets, it’s clear they’re growing up with a strong digital-first mindset. This is a true reflection of Malaysia’s impressive momentum in digital transformation.
“Mastercard is supporting this progress by driving innovation that delivers secure, seamless, and meaningful payment experiences – not just for Gen Alpha children, but for their parents as well. These insights will help guide how government and industry can collaborate to empower Gen Alpha families with the tools they need to thrive in a world where digital finance is second nature.”
Gen Alpha and Malaysian consumers lead in innovation adoption
Gen Alpha are clearly early adopters, but even Malaysia’s Gen Zs (72 per cent) and Millennials (69 per cent) prefer new, 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.
Across all generations in Malaysia, this percentage is 63 per cent, compared to 53 per cent in Asia Pacific, 25 per cent in North America and 24 per cent in Europe, underlining Malaysian consumers’ receptivity to adopting emerging digital payment solutions and their widespread appetite for innovation.
Research methodology
The findings in this release are based on a global research study conducted by The Harris Poll on behalf of Mastercard. The survey gathered responses from 19,302 consumers across five global regions, including 9,131 consumers in the Asia Pacific and 1,010 in Malaysia. The study was conducted through a quantitative online survey administered from 4 to 20 September 2024. It covered five regions: North America, Latin America and Caribbean, Europe, the Middle East and Africa, and Asia Pacific, which included respondents in Australia, China, India, Indonesia, Japan, Malaysia, Singapore, Thailand, and Vietnam.
References:
[1] The mean and median ages of Gen Alpha children, as represented by their parents in this study, are 7.24 years and 7 years, respectively.
[2] These include account(s) in their own names and account(s) owned by an adult such as their parent(s) or guardian(s).
[3] Source: Commission Factory – Marketing to Generation Alpha in Malaysia
Source: Mastercard (Press Release)