The Five Rules Shaping Gen Z’s Approach to Payments and Banking

Gen Z is not just another customer segment. They are the digital generation that is actively reshaping how payments, banking, and credit services are delivered and experienced. Their expectations are immediate, their habits mobile-first, and their financial mindset both pragmatic and personal. Drawing from recent PYMNTS Intelligence research and executive insights, here are the five core rules driving Gen Z’s influence on financial services.

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Instant Everything

Gen Z demands speed. Whether receiving payouts from gig work or transferring funds between apps and accounts, they expect instant money movement with no lag time. In the past year alone, 83 million digital wallet payouts to bank accounts were recorded, reflecting their preference for frictionless, 24/7 access to their funds. For Gen Z, if it’s not real-time, it’s not worth their attention.

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Mobile Banking as Command Center

To Gen Z, banking is mobile by default. Over half of them primarily use mobile banking apps, and nearly all approve of their access to digital services. But convenience is not enough. Gen Z views their mobile banking app as an all-in-one hub — not just for checking balances, but for managing savings, credit, investments, and spending. Despite high satisfaction, loyalty is fragile. More than one in three Gen Z credit union members say they are likely to switch institutions in the next year, usually in search of better tech and fewer fees.

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Credit Built for Control

This generation uses credit differently. Instead of relying on it for large purchases, Gen Z views credit cards as financial tools that should help them stay in control. Flexible repayment plans, real-time spending insights, and the ability to pre-set limits are all features they actively look for. Nearly half of Gen Z would increase their card usage if issuers offered more personalized payment options. They want products that work the way they think and budget — with transparency, flexibility, and digital customization.

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The Paycheck-to-Paycheck Paradox

Despite being tech-savvy and informed, many Gen Z consumers are under financial pressure. As of January 2025, 69% report living paycheck to paycheck — a sharp rise from two years prior. At the same time, they are also the most likely generation to put aside savings, with an average savings rate of nearly 10%. The paradox is clear: they are trying to save, while still navigating short-term financial stress. Their top financial pain point? Overspending on nonessentials, which 34% say directly contributes to their monthly strain.

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Frugality Is Trendy

Spending has slowed among Gen Z, but the use of alternative payment methods is rising. In-store and online purchases among 18- to 24-year-olds dropped 13% year over year. At the same time, nearly half now prefer installment plans, with many using them through third-party platforms or directly from merchants. Rather than being a sign of hardship, this shift reflects a broader trend: thrift is cool. Gen Z is finding creative ways to enjoy life while staying financially cautious, and payment providers need to keep up.

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Where Financial Institutions Go From Here

Gen Z’s projected $12 trillion in purchasing power over the next five years is a signal — not just of opportunity, but of urgency. Traditional institutions must evolve to meet this generation on their terms. That means prioritizing instant access to funds, offering smarter and more flexible credit tools, and building seamless mobile ecosystems. Personalization and transparency are no longer optional.

Gen Z is not waiting. They are setting the pace for what modern financial services should look like — fast, smart and entirely digital.

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Payment Solutions with Kubera Payments

At Kubera Payments, we help businesses across North America move millions of dollars daily, whether in-store, online, or on mobile. Our team of payment experts is here to guide you through the complexities of payment processing, ensuring your transactions are secure, reliable, and PCI-compliant. We have strong relationships with a wide network of acquirers and can help you find the right front-end and technology solutions to work together.

Get expert advice on optimizing your payments.

Contact our team at sales@kuberapayments.com or 604-484-9278.

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