Digital payments aren’t just a trend—they’re a way of life for Millennials and Gen Z. These tech-
savvy generations are redefining how money moves, from splitting bills with friends to paying
rent. But just how deep does this transformation go? Let’s take a look at the numbers behind their impact on the digital payments landscape.
Digital-First Generations: A Snapshot
Millennials (born 1981–1996) and Gen Z (born 1997–2012) have grown up in the digital era.
Mobile apps, contactless payments, and instant transfers aren’t innovations to them—they’re
expectations. According to a 2023 study by Deloitte:
- 75% of Millennials and 71% of Gen Z report using at least one digital wallet regularly
(e.g., Apple Pay, Google Pay, PayPal). - Over 60% of Gen Z say they avoid stores that don’t accept mobile payments.
Peer-to-Peer (P2P) Payments: The New Norm
Apps like Venmo, Zelle, and Cash App have exploded in popularity, especially with younger
users. Statista reports that:
- 68% of Millennials and 65% of Gen Z use P2P payment apps monthly.
- Venmo alone processed over $244 billion in 2023, with a significant portion driven by
users under 35.
These platforms aren’t just about convenience—they’re social. Gen Z particularly loves Venmo’s
social feed-style payment history, complete with emojis and messages.
Contactless and Mobile Wallet Usage
Mobile wallets are the digital equivalent of a leather wallet—and Millennials and Gen Z are
stuffing them full. According to a 2024 FIS Global Payments Report:
- 57% of Millennials and 55% of Gen Z now prefer mobile wallets over debit or credit
cards for in-store purchases. - Contactless payments are used by 83% of Millennials and 77% of Gen Z, compared to
just 54% of Gen X.
Convenience, hygiene (accelerated by COVID-19), and security are key factors behind this shift.
Digital Banking and Investment Habits
Beyond payments, Millennials and Gen Z are reshaping the broader financial ecosystem:
- 88% of Millennials and 94% of Gen Z use mobile banking apps weekly (Bankrate, 2023).
- Nearly 40% of Gen Z already invest in cryptocurrencies, compared to 29% of Millennials
(Charles Schwab, 2023).
Apps like Robinhood, Cash App, and Coinbase have made investing as easy as a swipe, and
applications like DepositLink provide the convenience this demographic expects when buying or
renting a home.
Millennials and Gen Z are not just adopting digital payments—they’re demanding better, faster, and smarter financial tools. Their preferences are driving innovation across the fintech space, forcing traditional institutions to evolve or risk irrelevance. If you’re a business, brand, or financial service provider, here’s the takeaway: Go digital—or get left behind.
