Payments

Gen Z embraces digital wallets but they actually want more

  • A significant portion of younger consumers are increasingly interested in exploring alternative uses of digital wallets, especially for specific money transfer purposes.
  • The higher spending habits among Gen Z digital wallet users underscore their potential value for merchants and businesses aiming to cultivate future core customer bases.
close

Email a Friend

Gen Z embraces digital wallets but they actually want more

The adoption of digital wallets is expected to grow with new use cases this year. McKinsey predicts that more than two-thirds of Americans expect to have a digital wallet within two years, and many will likely hold multiple wallets. This indicates a shift away from physical debit card usage toward using debit cards through digital wallets.

“Using digital wallets and mobile payment apps were once emerging trends but are now becoming common practice for both online and in-store purchases,” Christine Roberts, EVP, and President of Citizens Pay told Tearsheet recently.

According to Roberts, this validates the need for omnichannel solutions focusing on the customer experience throughout the [shopping] journey, and the continued evolution of contactless payment options beyond credit or debit cards.

Dong Min Kim, Director of Google Wallet, shared some payment insights with Tearsheet, “As digital wallet adoption continues to grow, consumers want their wallets to include additional non-payment essentials we need to navigate our daily lives, including identification, health insurance cards, transit passes, and more.”

Google Wallet has been working with the ecosystem to expand the types of passes people can save in their Google Wallet, for example. In June 2023, the firm announced support for new non-payments pass types including mobile driver’s licenses – which are now live in Arizona, Colorado, Georgia, and Maryland – and a secure pass type to store digital healthcare cards.

While these are among the top non-payment features consumers prioritize, many younger consumers are inclined to explore additional ways of using digital wallets for specific money transfer purposes, as outlined in a recent PYMNTS report.


subscription wall for TS Pro

0 comments on “Gen Z embraces digital wallets but they actually want more”

Payments

What’s behind the move to closed loop payments and branded digital wallets

  • As merchants look to deepen customer loyalty and bypass payment processing fees, a growing number of brands are launching their own branded consumer wallets and payment solutions
  • From coffee shops to retailers and online marketplaces, closed-loop digital wallets enable businesses to facilitate transactions directly with consumers while integrating rewards and incentives.
Zachary Miller | May 29, 2024
Member Exclusive, Payments

[Payments Briefing] How to spot red flags: American Express’ approach to fintech partnerships is like dating

  • Strengthening its fintech partnerships enables American Express to expand the reach of Amex cards via its Agile Partnership Platform.
  • Amex places a strong emphasis on the payment solutions that potential partners bring to the table, seeking offerings that are not only novel but also rooted in delivering tangible value to customers, regardless of whether they operate in the B2B or B2C space.
Sara Khairi | May 15, 2024
Member Exclusive, Payments

Inside Affirm’s strategy to get new cards in more users’ hands (a visual guide)

  • Affirm's financial results have really picked up over the last quarter and part of that is due to the success it's having with its Affirm Card.
  • Here's the story of Affirm's card growth strategy told in charts.
Zachary Miller | May 13, 2024
Payments

Klarna joins the race for top-of-wallet status in the US with its new card offering

  • Klarna is the latest player in the US market to introduce a new card offering and open its waitlist to American consumers.
  • Klarna's credit card has the potential to find a stronger appeal among Millennials and Gen Z, who happen to constitute the largest segments within Klarna's US customer base.
Sara Khairi | May 09, 2024
Payments, SMB Finance

SMBs are increasingly opting for real-time payments, leaving credit cards behind as their preferred choice

  • Healthcare SMBs are increasingly turning to RTP payments for A2A transfers, surpassing credit cards and checks in usage over the past year.
  • As healthcare provider businesses increasingly integrate instant payments, two notable factors stand out that shape the adoption and usage of real-time payment rails across this sector.
Sara Khairi | May 01, 2024
More Articles