How Gen Z Is Shaping the Next Generation of Payment Experiences

Digital-First, Always: The New Normal

Ask anyone under 30 how they paid for their last coffee or concert ticket, and you’ll rarely hear “cash” or “credit card.” For Gen Z—those born roughly between 1997 and 2012—mobile wallets, peer-to-peer payment apps, and contactless cards have moved from future tech to daily essentials. What used to be cutting-edge is now hardwired into their lifestyle.

A staggering 60% of Gen Z consumers plan to use digital wallets even more frequently in 2025, with 37% expecting the majority of their transactions to be wallet-based. Even more telling, 18% say they’ll use digital wallets for all transactions within the next year or two. That’s a foundational shift that signals the end of the cash era and a wholesale embrace of speed and convenience over legacy payment rails.

Driving Factors: Convenience, Speed, and Integration

Digital-native convenience is at the core of Gen Z’s payments behavior. They expect to initiate, authenticate, and complete a payment within a few taps—or automatically through their wearables. If a payment option feels slow or clunky, it’s a dealbreaker.

Key drivers behind these preferences:

• Super Fast Transactions: With P2P apps and mobile wallets, payments happen in seconds—no signing, no fuss.

• Integrated Experiences: Gen Z looks for payment options woven directly into the apps and platforms where they already spend their time, whether that’s in gaming, social media, or retailer apps.

• Omnichannel Everything: Whether at a physical checkout, online, or in-app, they want frictionless transitions and choice.

They’re not just using smartphones—more than 36% already transact with smartwatches and other connected devices. Payments are embedded into their digital ecosystem, putting the focus on flexibility and broad device compatibility.

From Cautious Childhoods to Financial Control

Having grown up during the 2008 recession and come of age through the COVID-19 pandemic, Gen Z has developed a practical, sometimes cautious, relationship with money. They often prefer debit over credit and actively avoid the debt cycles that characterised previous generations. Control and transparency are non-negotiable.

• Debit First: Debit payments are king—spend what’s in your account, avoid surprises later.

• Buy Now, Pay Later (BNPL): BNPL tools like Klarna and Affirm let Gen Z break up purchases without high-interest credit card debt, offering financial flexibility on their own terms.

• Minimalism in Finance: Simplicity rules. Many would rather manage a few intuitive apps than juggle complicated credit setups or banks with legacy tech.

Alternative Payments Aren’t Optional—They’re Expected

Gen Z is the first generation to collectively abandon the traditional payment toolbelt in favor of a patchwork of alternative methods designed for their digital-first world. They find cash awkward, checks laughable, and even chip cards a bit too slow.

Here’s what they’re using:

• Digital Wallets: Apple Pay, Google Wallet, and retailer-specific apps serve as the wallet, debit card, and loyalty card in one.

• Peer-to-Peer Apps: Venmo, Cash App, and Zelle aren’t side acts—they’re main players, especially for the 14% of “underbanked” Gen Zers who may never open a traditional bank account.

• Cryptocurrency: Nearly half of Gen Z and millennials have owned crypto, and they’re open to paying this way for both goods and digital experiences.

• Superapps and Loyalty Apps: Superapps that combine messaging, social, and checking out (think WeChat) are starting to catch on globally. Meanwhile, Gen Z loves loyalty-driven payment apps that offer perks and link directly to financial incentives.

Security, Privacy, and Trust: Core Features, Not Afterthoughts

This generation is deeply aware of digital risks—they grew up amid data breaches and are quick to recognise the importance of security.

What they demand in payments:

• Biometric Security: Touch ID, Face ID, voice commands—if it uses your unique features, Gen Z is on board.

• Tokenisation & Encryption: They expect sensitive data to be protected, both at rest and in transit.

• Transparency: Gen Z appreciates knowing where their data goes and how it’s used, choosing platforms that make privacy a core value.

Interestingly, 94% of Gen Z trust digital assets like stablecoins or tokens during economic uncertainty—a level of trust not seen in older generations. They’re more comfortable with digital assets than with traditional banks or even paper money, seeing them as resilient and transparent alternatives.

Why Rewards and Inclusion Matter

For Gen Z, payments aren’t just about moving funds; they’re about maximising each dollar. Over half prefer payment methods that return cashback or rewards. They’re diligent about connecting payment accounts to loyalty programs for discounts, points, and exclusive deals. If a payment method can bundle financial incentives, it quickly rises to the top of their favourites list.

Financial inclusion is also central. Many Gen Zers—particularly those new to the workforce or international students—operate fully outside the world of bank branches and savings accounts. Payment apps and digital wallets provide access and mobility, allowing users to send, receive, and manage money anywhere, anytime.

The Ripple Effect: How Businesses Need to Adapt

For businesses, the Gen Z payment revolution is already here. Failing to cater to these expectations is an easy way to lose relevance with the next generation of consumers and talent. Some of the most urgent changes for organisations include:

1. Expanding Digital Wallet Options If your checkout process doesn’t support Apple Pay, Google Pay, and other local wallets (not to mention BNPL), you’re already behind. Gen Z expects quick, modular payment flows—whether in-store, in-app, or online.

2. Embracing Multi-Channel Payments and SoftPOS As digital rises, softPOS solutions (accepting payments directly on standard phones and tablets, no extra hardware needed) reduce friction and costs for merchants. Gen Z firmly believes their phone is their wallet, and businesses should respond in kind.

3. Incentivise Payments Offer rewards, discounts, or loyalty benefits with every transaction, maybe even ,. This is how you turn a payment method from “adequate” into “essential.”

4. Prioritising Transparency and Security Share your privacy and data practices clearly, and invest in robust authentication (like biometrics or one-time tokens). Security is a dealbreaker for Gen Z.

5. Flexibility and Personalisation Give customers the option to choose how they pay and let them design their experience (save cards, split payments, and integrate loyalty easily). This flexibility will be increasingly expected.

Looking Forward: The Payment Ecosystem Reimagined

Gen Z isn’t just tweaking how they pay—they’re redefining the rules. Their comfort with apps, alternative currencies, softPOS, and digital rewards is rapidly becoming the market standard. As they step into business leadership roles and gain spending power, the ripple effect will change B2B payment expectations and innovation cycles, too.

The next wave of payment innovation—driven by Gen Z—will feature:

• Seamless integration across channels, platforms, and devices

• Continuous movement away from cash and plastic cards

• Universal loyalty and rewards at the transaction layer

• Transparency in every financial decision, powered by tech

The sooner businesses adopt these shifts, the easier it will be to engage, earn trust, and grow with emerging generations.

Want insights on staying ahead in payments innovation? Explore more in our Fintech Blog or talk to the RivaTech Consulting team about future-ready strategies.