Seven in 10 Gen Z Canadian adults (69%) have embraced the mobile wallet, and six in 10 (63%) prefer to leave their physical wallet at home for short trips, according to a recent survey commissioned by Interac Corp.
Gen Z’s use of mobile wallets outpaces all other generations including Millennials (60%), Gen X (44%), Boomers (27%) and the Silent Generation (10%).
Interac transaction data shows that Gen Z’s digital-first habits are contributing to a 27% increase in Interac Debit mobile contactless payments in H1 2024, as compared to the same period in 2023.
Nearly two thirds of this generation of mobile wallet users (63%) have loaded their Interac Debit card on their phone, while three in 10 (31%) have taken the steps to set debit as their default payment method.
With six in 10 Gen Zs (63%) associating mobile transactions with greater speed than physical card payments, it’s becoming all too easy to pay on autopilot, making the selection of the default card key.
“Choosing your default payment method may feel like a small step, but it can play a big role in shaping Canadians’ ongoing spending habits,” said Glenn Wolff, Group Head and Chief Client Officer, Interac.
“When consumers tap to pay with their phones, the decision to select a card from the digital wallet is easy to miss. Canadians could end up unintentionally using a default payment method that prompts them to take on more debt. This differs from traditional physical wallets where the consumer had to select the card they wanted to use each time.”
Amid these pressures, two thirds of Gen Z (62%) want to be more mindful when spending and over half of Gen Z (57%) say they want the option to use debit when paying in store or online.
Their views are no doubt shaped by a wider economic context, where nearly eight in 10 (79%) Gen Zs say the cost of living is too expensive and nearly six in 10 (59%) feel the need to be smarter with their money.
Gen Z’s desire to control overspending is heightened by the arrival of back-to-school season, which is traditionally linked with greater spending.
For example, last year, family clothing stores saw almost twice as many Interac Debit mobile purchases in September and October compared to earlier that year in January and February.
Over half (54%) of Gen Zs see the need to develop new habits to stay in control over their finances, and 56% are setting a timeline for this September to introduce new habits.
“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 debit as a smart and controlled approach to digital spending,” added Wolff.
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