Gen Z embraces mobile payments, outpacing other generations, as they aim to manage rising living costs
A recent survey by Interac Corp. reveals that 69 percent of Gen Z Canadian adults have adopted mobile wallets, with 63 percent opting to leave their physical wallets at home for short trips.
Gen Z's use of mobile wallets surpasses other generations, including Millennials at 60 percent, Gen X at 44 percent, Boomers at 27 percent, and the Silent Generation at 10 percent.
Interac data highlights that Gen Z’s preference for digital payments has driven a 27 percent increase in Interac Debit mobile contactless payments in the first half of 2024 compared to the same period in 2023.
Among these users, 63 percent have added their Interac Debit card to their phones, and 31 percent have set debit as their default payment method. The convenience of mobile transactions, perceived as faster by 63 percent of Gen Z, underscores the importance of selecting the right default payment method.
Glenn Wolff, group head and chief client officer at Interac, pointed out that choosing a default payment method can significantly influence spending habits.
He noted, “When consumers use their phones to pay, they might not realize they’re using a default card, which could lead to increased debt—a situation different from selecting a card from a physical wallet.”
Despite the appeal of mobile payments, 62 percent of Gen Z aim to be more mindful of their spending, with 57 percent expressing a preference for using debit in-store or online.
This cautious approach is shaped by economic pressures, with 79 percent of Gen Z acknowledging the inflated cost of living, and 59 percent recognizing the need to be smarter with their finances.
As the back-to-school season approaches, a time linked to higher spending, Gen Z’s focus on controlling expenses becomes more pronounced. In September and October of last year, Interac Debit mobile purchases in family clothing stores nearly doubled compared to January and February.
Over half of Gen Z, at 54 percent, see the need to form new financial habits, with 56 percent planning to implement these changes by September.
Wolff added, “As their expenses increase going into the fall, younger Canadians are focused on making their money go further. This generation is among the worst hit by cost-of-living pressures, and it's no wonder that they see the value of Interac Debit as a smart and controlled approach to digital spending.”
