Digital payments or cash – How millennials, Generation X and Z pay in 2025

Financial technology is evolving faster than ever, and this has a direct impact on how people manage their money. 

Innovative developments have led to the development of payment methods such as mobile wallets, cryptocurrencies, Buy Now Pay Later (BNPL), and biometric payments, which have also driven further changes in the industry.

Some of these are rapidly becoming part of younger consumers' everyday lives, while other generations remain committed to tried-and-tested solutions.

While some consumers expect instant contactless transactions, others value the stability of classic banking products. As a result, the payments market today is developing in several directions simultaneously, balancing innovation and user habits.

• So why does Generation Z trust digital wallets more than traditional banks? 
• Why do baby boomers continue to use cash even as mobile payments have become ubiquitous? 
• And which payment methods will dominate in the future? 

According to Kantar research, Millennials are the most active credit card users of all generations, with 65% of all Millennials having a credit card. 

They are also more likely to choose specialized cards linked to airlines (14%) and retailers (25%), reflecting their desire for personalized benefits and loyalty programs. 

Known for prioritizing experiences over material things, this generation is strategically using credit cards to maximize travel rewards and exclusive retail discounts, combining lifestyle aspirations with financial strategy.

Generation Z members prefer instant rewards such as refunds: 40% choose this option, which is higher than older generations.

They are also active users of digital payment methods: more than half of Generation Z (54%) have used services such as Apple Pay or Google Wallet. This reflects their trust in the latest technology and their desire for fast and convenient transactions. 

Generation X prefers credit cards with a focus on discounts and rewards: 40% say this is their main motivation for using credit cards. 

However, only 35% of this generation use digital payment methods, indicating a cautious approach to new technologies.

Baby boomers have the lowest adoption rate of digital payments, with only 18% using these methods. They are also the most concerned about the security of mobile payments: 43% express concern about the security of mobile payment sources, highlighting the need for more robust security measures in the digital payment space to attract this consumer group.

This data highlights how technological innovation and financial priorities are influencing the payment preferences of different generations, which is important for businesses and financial institutions to consider when developing customer acquisition strategies.

Regardless of age and financial habits, every user expects maximum comfort, speed, and security from payment services. Tranzzo is a universal payment platform that provides all popular payment methods, taking into account the preferences of different generations.

• Millennials, who actively use credit cards, can make payments through Tranzzo quickly and securely while benefiting from loyalty programs.
• Generation Z, who prefer digital wallets and P2P transactions, will find Tranzzo supports the most popular mobile payment methods, such as Apple Pay, Google Pay, and others.
• Generation X, which prefers classic bank cards, gets a simple and convenient interface for cashless payments.
• Baby boomers who value stability and security can count on proven payment methods and enhanced fraud protection mechanisms.

Tranzzo integrates a wide range of financial solutions: from traditional bank payments to cryptocurrency transactions and BNPL services. As a result, both businesses and end consumers receive a payment system that meets modern market requirements and provides maximum flexibility for all age groups.

Taking into account the diverse financial habits of each generation, Tranzzo offers an innovative approach that allows users to pay the way they want, regardless of their preferences and technical literacy.