Generation Z vs Millennials: the new payment habits in 2025

The digitalization of payments has radically transformed the way consumers interact with businesses, driving the need for companies to offer a wider range of options when it comes to paying for a product or service.

In our 2025 survey, “Payment Methods: The Final Decision”, we analyzed how each generation behaves when faced with different payment methods. The results reveal a clear generational divide: while Generation Z embraces the immediacy of digital payments, Millennials continue to trust the card as their main method. Below, we break down the trends and habits of each generation.

Generation Z: pioneers in digital payments

Generation Z (between 13 and 28 years old) has become the best example of how technology is fully integrated into their payment behavior when shopping.

Preference for wallets (Apple Pay and Google Pay)

Generation Z shows a clear preference for digital wallets. 52% of young people choose these wallets for their speed and convenience, surpassing cards (33%). In third place is cash (7%), while PayPal and Bizum each account for 4%.

Cash: a residual option for Gen Z

Although digital payment methods dominate this age group, 42% say they carry some cash, but rarely more than €20. Why? They find carrying physical money inconvenient for daily use—31% actively avoid it. Cash is mostly used for small local purchases, which represent only 4% of their total transactions.

Millennials: between traditional and digital methods

While Generation Z clearly leans toward digital payments, Millennials (aged 39 to 44) are caught between two worlds.

Physical cards still dominate

Millennials remain loyal to physical cards, which are preferred by 63% of respondents. Next comes cash (19%), followed by wallets (15%). This confirms that, although they are familiar with fintech innovations, they still trust the security of traditional payment methods.

A balance between online and in-store shopping

Despite their strong preference for credit and debit cards, Millennials show balanced shopping behavior. Their online and offline purchase habits are nearly identical: 40% prefer shopping online, while 37% favor physical stores. This small difference highlights how this generation values both the immediacy of ecommerce and the in-person experience of physical shops.

Online payment experience

Although both generations are familiar with online shopping, their reactions to payment issues differ significantly:

• 46% of Generation Z would abandon their cart within five minutes if a payment error occurred.

• Only one in four Millennials would stop the purchase if they noticed a delay in the process.

These figures highlight the cart abandonment rate, but waiting time also underscores Gen Z’s impatience:

• 45% of Millennials would wait more than five minutes before abandoning their cart.

• However, only 31% of Generation Z would wait longer before canceling the purchase.

This shows that Gen Z is far less tolerant of payment delays and more likely to abandon purchases than Millennials.

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The ideal virtual POS for your ecommerce

A fast, secure, and optimized payment gateway can make the difference between losing or closing a sale, especially with Generation Z. If your online business doesn’t offer a smooth payment experience, the risk of cart abandonment increases significantly.

At PaynoPain, we help you improve your conversion rate with a virtual POS tailored to the payment expectations of the new generations.

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