The ZBD Gen Z Payments Study, coducted by Atomik Research on behalf of ZBD payments company offers new insights into Generation Z’s preferences regarding payments, banking, and fintech. It is a report based on a survey of more than 2,000 young people aged 18 to 27 in the U.S. and the U.K.
This in-depth research highlights that 86% of young people in this generation consider the use of cashback and loyalty rewards important when making a purchase, and 99% value financial education.
Generation Z is set to become the largest and wealthiest generation in history. Although this generation has grown up as digital natives, it is a mistake to assume they only opt for new methods. According to the study, young people between the ages of 18 and 27 not only use digital payment methods like apps (45%) and digital wallets (48%), but they also continue to use debit cards (62%) and cash (57%). Surprisingly, these figures have surpassed the use of credit cards (41%), revealing a more diverse financial behavior than one might expect.
This generation seeks flexibility in their finances, combining both traditional and emerging methods. While they invest in cryptocurrencies (24%) at similar rates to stocks (22%), 35% of them trust traditional banks more than neobanks (5%), showing a preference for security.
One of the most significant findings is the overwhelming interest of young people in cashback and loyalty rewards. 86% of respondents see this as an essential factor when making purchasing decisions. Additionally, 70% expect to earn rewards by using apps or playing video games, highlighting a clear trend towards the gamification of payments and loyalty strategies.
Financial education is another key priority, with 99% of young people stating that it is important. Interestingly, they learn more about financial management from family members (47%) than from schools or educational programs (29%). This disconnect between formal education and real-world financial knowledge suggests an opportunity for fintech companies to offer engaging educational content.
The use of credit cards is declining among Generation Z. Thanks to options like buy now, pay later (BNPL) and new reward models that better fit their needs. This, combined with the growing adoption of apps and services like Google Pay or Apple Pay, has pushed credit cards out of the spotlight in the payment landscape.
Despite the popularity of these digital methods, traditional banks still hold the trust of young people. 35% preferring these types of financial institutions over neobanks, which are preferred by only 5%. This data underscores that while Gen Z embraces digital solutions, they do not do so at the expense of the perceived security offered by conventional banks.
When it comes to investments, 67% of Generation Z respondents already have at least one investment. Cryptocurrencies (24%) are slightly more popular than traditional stocks (22%). 82% believe that owning tangible assets is important, and 69% are confident that they will be able to purchase a home one day.
This study highlights the importance of offering multichannel and flexible proposals that reward the time and money Generation Z spends on platforms.
As Ben Cousens, ZBD’s Chief Strategy Officer, points out: “Our research shows that Gen Z is far from unreachable for the financial services industry; however, it’s true that there’s no one single touchpoint for them. What’s clear is that they expect their engagement with and loyalty to retailers, merchants, platforms and providers to be meaningfully rewarded, not just acknowledged. This paradigm shift is both being powered by and is set to radically alter the payments and fintech landscape, and is why we’ve labeled Gen Z ‘The Reward(ed) Generation’. As an industry, we need a diverse, multichannel proposition that – crucially – rewards Gen Z for the time and money they spend with us.”
Image: Flux
Your email address will not be published. Required fields are marked *
Δ