Gen Z Consumer Payment Habits

Gen Zers are flocking to emerging payment methods, but card-based options, led by debit cards, remain supreme. Payment providers must align offerings with Gen Z’s preferences now as their spending power grows.

Topics

Financial Services

Payments

Generation Z

United States

Table of Contents

Report Snapshot

Gen Zers will need to balance spending and saving priorities as they grow into their financial prime.

Gen Zers’ card usage transcends their mobile preferences.

Among card-based payment methods, Gen Z prefers debit cards.

Gen Zers’ credit card use will change as they enter a new life stage—but emerging credit options pose a threat.

Gen Z’s attraction to prepaid cards is being trumped by competing offerings from digital-first banks.

Gen Z’s early embrace of mobile wallets will drive the technology into the mainstream.

Gen Zers are driving the BNPL surge but will need a push to boost in-store usage.

Gen Z’s crypto payments leadership will be buoyed by digital wallet innovation.

What should marketers in the payments industry do next?

Sources

Media Gallery

Report Snapshot

Gen Zers will drive the growth of emerging payment methods, opening the door for providers to reach them through digital and mobile. But card-based payment methods are still relevant. To tap their rising spending power, providers must align their offerings with how Gen Z prefers to pay.

Key Question: How is Gen Z affecting the growth of emerging and traditional payment methods?

KEY STAT: By 2026, Gen Z will catch up to millennials in using emerging payment methods like buy now, pay later (BNPL) and mobile wallets. Payment providers of all stripes will need to meet their high digital expectations.

Here’s what’s in the full report

2files

Exportable files for easy reading, analysis and sharing.

8charts

Reliable data in simple displays for presentations and quick decision making.

Report Snapshot
Gen Zers will need to balance spending and saving priorities as they grow into their financial prime.
Gen Zers’ card usage transcends their mobile preferences.
Among card-based payment methods, Gen Z prefers debit cards.

Gen Zers’ credit card use will change as they enter a new life stage—but emerging credit options pose a threat.
Gen Z’s attraction to prepaid cards is being trumped by competing offerings from digital-first banks.
Gen Z’s early embrace of mobile wallets will drive the technology into the mainstream.
Gen Zers are driving the BNPL surge but will need a push to boost in-store usage.

Gen Z’s crypto payments leadership will be buoyed by digital wallet innovation.
What should marketers in the payments industry do next?
Sources
Media Gallery

Charts in This Report

US Gen Z and Total Population, 2023 (% of total)Preferred Payment Methods for Online Purchases Among US Gen Z Adults vs. Total Population, 2021 (% of respondents)

Payment Method Preferences Among US Gen Z Adults, 2021 (% of respondents)US Adults Who Own at Least One Credit Card vs. Those Who Also Have Credit Card Debt, by Generation, Feb 2023 (% of respondents in each group)

US Adults Who Own an Open-Loop Consumer Reloadable Prepaid Card, by Generation, Nov 2021 (% of population in each group)US Proximity Mobile Payment User Penetration, by Generation, 2022 & 2026 (% of internet users in each group)

US Buy Now, Pay Later (BNPL) User Penetration, by Generation, 2022 & 2026 (% of digital buyers in each group)US Cryptocurrency Owner Penetration, by Generation, 2020 & 2025 (% of population in each group)

Access All Charts and Data

Gain access to reliable data presented in clear and intelligible displays for quick understanding and decision making on the most important topics related to your industry, included at no extra cost.

Gain Access to EMARKETER →