Younger adults are shifting toward mobile payments, digital wallets, and buy-now, pay-later options. That changes how purchases feel, how frequently they happen, and how money management works for this cohort.
Adults 24 and younger make 45% of their purchases by phone, nearly double the 23% rate across all age groups, while cash accounts for just 14% of purchases.
More than half of surveyed Gen Z respondents said they’re likelier to spend cash thoughtlessly, suggesting digital payment formats change perceptions of money.
Buy-now, pay-later (BNPL) outpaced credit-card use among young shoppers during the 2024 holiday season and tends to increase purchase amounts when available at checkout.
Wongnatthakan/Getty Images Money by Sidnee Michelle September 20, 2026 Gen Z's Cashless Habits Are Changing. Gen Z's reliance on digital wallets is reshaping how young consumers pay for purchases—and changing how some view physical cash, Business Insider reports. Adults 24 and younger make 45% of their purchases by phone, nearly double the 23% rate across all age groups, according to a 2025 Federal Reserve report.
Young shoppers used buy-now, pay-later services more than credit cards during the 2024 holiday season, according to J.D. The financing option allows consumers to divide purchases into smaller installments instead of paying the full cost up front. Digital payments offer speed and convenience, but they can also make spending less tangible as transactions increasingly happen with a tap of a phone rather than an exchange of physical money.
The shift is particularly pronounced among younger consumers. Cash, meanwhile, accounts for just 14% of purchases. Digital wallets are also becoming more prevalent.
With 40 percent of Americans living paycheck to paycheck, Gen Z is taking a transparent approach
Young adults now open a budgeting app with the same ease they open a shopping tab. A coffee, a rideshare, a late-night top-up, all of it sits in one timeline. That daily view changes behavior. Small purchases stop feeling invisible, and online spending starts to look less casual than it did a few years ago. […] The pos
Consumer payment preferences have shifted, but many loyalty strategies have not. Debit has become the primary payment method for a growing segment of consumers—especially younger generations—yet many financial institutions continue to focus their investment on credit card programs. That disconnect represents a clear op
Blackhawk Network research found that price concerns are prompting young Australian consumers to use gift cards as a creative budgeting tool.
As “Buy now, pay later” options continue to rise in popularity, more and more people question what this says about
Or: Why you should never bring your holiday tan to my house… The post Money is power appeared first on Monevator .
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