How Gen Z’s payment habits will shape tomorrow’s payment trends

by Irene Skrynova, Chief Customer Officer at Unlimint

Share this post

Gen Z, or the iGeneration, values convenience, speed, and security in their payment methods. As they gain financial independence and spending power, their choices will influence the next few decades of payments innovation.

Gen Z, also known as the iGeneration is the demographic group following the Millennials. Born between 1997 and 2012, this generation is the first to have grown up entirely in the 21st century and has had access to technology and the internet from a very young age. As a result, they have a unique relationship with technology and are often considered to be the most tech-savvy generation yet.

When it comes to payment trends, Gen Z has a strong preference for digital and mobile payments. This is largely due to their comfort with technology and their desire for convenience and speed. They are also more likely to be skeptical of traditional financial institutions and therefore inclined to trust technology companies and digital platforms more.

More than a half of Gen Zers do not have a personal or parent-opened bank account. In the past, this would have limited their involvement in trade and commerce. However, the use of mobile wallets, which are often provided by non-financial institutions, such as telecom companies, has now introduced an alternative solution for this demographic group. The FIS Pace survey showed that 57% of Gen Z owned mobile wallets in Q1 of 2021 versus 50% during the same period in 2020.

Gen Zers are drawn to the decentralised nature and anonymity of cryptocurrencies, which is important to them as they are a generation that values privacy. While cryptocurrencies are still much more popular among millennials, we can see the Gen Zs actively catching up to them: in 2021 13% of Gen Z owned cryptocurrency and this number grew to 17.40% in 2022.

Gen Z is also more likely to use subscription-based payment models, not only for digital goods like Netflix or Spotify but also for food. Gen Zers are comfortable with the idea of paying for access to a service or product on a recurring basis. Gen Zers, in particular, spent nearly twice as much on subscriptions compared to all the other generations, while at least 80% of them had subscriptions in four of the five essential subscription categories (video streaming, music, miscellaneous, e.g., VPN, food, beauty and wellness).

In conclusion, Gen Z is a generation that values convenience, speed, and security in their payment methods. They are comfortable with technology and have a strong preference for digital and mobile payments. Their tendency to choose subscription models and get rid of cash is showing that Gen Zers want to make payments seamless and almost ‘invisible’ in their daily lives.

A study by PPRO showed that 48% of Gen Zers will abandon a purchase if their favorite payment method isn’t available. This is why payment sector professionals and businesses need to offer the most relevant forms of payments. As this generation enters the workforce and becomes more financially independent, their spending power and influence will only continue to grow and their preferences will continue to shape the future of payments.

Irene at Unlimint
Irene Skrynova is the chief customer officer at Unlimint.

More To Explore

Membership

Merchant Community Membership

Are you a member of The Payments Association?

Member benefits include free tickets, discounts to more tickets, elevated brand visibility and more. Sign in to book tickets and find out more.

Welcome

Log in to access complimentary passes or discounts and access exclusive content as part of your membership. An auto-login link will be sent directly to your email.

Having trouble signing?

We use an auto-login link to ensure optimum security for your members hub. Simply enter your professional work e-mail address into the input area and you’ll receive a link to directly access your account.

First things first

Have you set up your Member account yet? If not, click here to do so.

Still not receiving your auto-login link?

Instead of using passwords, we e-mail you a link to log in to the site. This allows us to automatically verify you and apply member benefits based on your e-mail domain name.

Please click the button below which relates to the issue you’re having.

I didn't receive an e-mail

Tip: Check your spam

Sometimes our e-mails end up in spam. Make sure to check your spam folder for e-mails from The Payments Association

Tip: Check “other” tabs

Most modern e-mail clients now separate e-mails into different tabs. For example, Outlook has an “Other” tab, and Gmail has tabs for different types of e-mails, such as promotional.

Tip: Click the link within 60 minutes

For security reasons the link will expire after 60 minutes. Try submitting the login form again and wait a few seconds for the e-mail to arrive.

Tip: Only click once

The link will only work one time – once it’s been clicked, the link won’t log you in again. Instead, you’ll need to go back to the login screen and generate a new link.

Tip: Delete old login e-mails

Make sure you’re clicking the link on the most recent e-mail that’s been sent to you. We recommend deleting the e-mail once you’ve clicked the link.

Tip: Check your security policies

Some security systems will automatically click on links in e-mails to check for phishing, malware, viruses and other malicious threats. If these have been clicked, it won’t work when you try to click on the link.

Need to change your e-mail address?

For security reasons, e-mail address changes can only be complete by your Member Engagement Manager. Please contact the team directly for further help.

Still got a question?