How Gen Z Will Affect The Future Of The Peer To Peer Economy

Millennials have been the dominant demographic for the past decade, and have captured the attention of marketers everywhere. However, behind them is a swelling demographic set to far surpass the size and opportunity that millennials have offered. That group is Generation Z, which is already estimated to have a collective spending power of $44 billion.

Born in the mid-1990s to late 2000s, Gen Z accounts for one-quarter of the U.S. population. They are considered the most diverse and most multicultural generation the U.S. has ever seen. The highly influential Gen Zers are the first digital native generation. They are already impacting the current peer-to-peer (P2P) economy and will have an enormous effect on how this economy evolves.

Defining The P2P Economy 

Also referred to as the sharing economy, P2P is a movement that was first embraced by millennials who felt the impact of economic recessions and were in search of an alternative way to work and live. The powerbrokers in the economy often denied them or put items they desired out of reach. Because of this, those who backed this economic movement developed ways to exchange goods and services without a third party.

The P2P economy swiftly gained traction. New online peer-to-peer lending platforms were the first to develop. Then unique companies like Airbnb and Uber emerged, which sought to empower consumers to make money off of what they had, sharing it with others and solving travel and transport issues without having to turn to hotels, taxis, or even vehicle ownership. 

From there, the P2P economy spread to other applications, including stocks, investments, real estate, fundraising and more. So began the migration to freelancing and a startup stampede. Since then, it’s been business on their terms rather than on the terms of established institutions and large, entrenched companies.

Read more at Forbes