“Do you take Apple Pay?” and Other Gen-Z Mobile Wallet Trends

Generation Z is paving the way for many new technologies and trends. In the retail space, one of the largest trends is the adoption of mobile wallets as a payment method. 

Mobile wallets - like Apple Wallet or Google Wallet - are digital wallets that can be accessed on your phone through a pre-installed app. It has all the functionality of a physical wallet, with the capability to store digitized credit and debit cards, coupons, loyalty cards, gift cards, tickets, and more. 

Here are some key findings from a recent study conducted by Forbes about the ways that Gen-Z is using the mobile wallet. 

Gen-Z Uses Mobile Wallets as their Primary Payment Method for Shopping

Gen-Z is unsurprisingly mobile first in everything they do, and personal finance is no exception. This generation, characterized by its tech-savvy nature, appreciates the convenience and efficiency offered by mobile wallets. 

This is clearly reflected in the 91% of Gen-Z survey participants who said that they were choosing mobile wallets as their primary payment method for shopping, followed closely by 86% who said the same for travel expenses. 

Members of Gen-Z frequently walk into stores asking, “do you take Apple Pay?” or “do you take Google Pay?” - especially for spontaneous shopping trips. This group of shoppers don’t readily carry cash (or even cards) nearly as often as previous generations. 

Gen-Z is setting the pace for the future of mobile payment methods - and there is no going back. 

Gen-Z Spends More Money When Using Digital Wallets

One intriguing revelation from recent surveys is the correlation between mobile wallet usage and increased spending. 

Over 60% of Gen-Z admitted to spending more money when utilizing mobile wallets. This shift in spending behavior is a testament to the psychological impact coined the "pain of paying." Coined by behavioral economists, this term describes the negative emotions experienced during a purchase, specifically with physical cash. 

Mobile wallets, with their seamless and almost frictionless transaction process, seem to mitigate this pain, encouraging users to spend more freely.

78% of Gen Zers Have Stopped Shopping at Merchants that Only Accept Traditional Payment Methods

Shoppers have options for where they spend their time and money. For traditional retailers still relying solely on conventional payment methods, the implications are profound. A notable 78% of Gen-Z has reported abandoning retailers that don’t accept mobile payment methods. This signals a message as clear as day: adapt or risk being left behind.

Those who fail to integrate mobile payment methods may find themselves losing not only sales, but the loyalty of a growing customer market segment.

Final Thoughts

The rise of mobile wallet usage among Gen-Z points to a broader shift in consumer preferences. 

The convenience, security, and speed offered by these mobile payment methods resonate with a generation that values efficiency and seamless experiences. As Gen-Z continues to influence market trends, businesses must pivot to align with their preferences. That means adopting mobile payment options to remain competitive in an ever-changing landscape.

With these consumer sentiments in mind, brands and retailers cannot afford to miss out the opportunity to drive sales and customer retention through the mobile wallet channel.