This shouldn’t come as a surprise—this generation grew up during the 2008 recession and came into adulthood in the middle of the COVID-19 pandemic. These economic challenges shaped their attitudes toward money, making them cautious, practical, and determined to stay in control of their finances.

Trusty debit takes the lead

For Gen Z, studies show that debit cards reign supreme for everyday purchases. A staggering 69% of young consumers report using them at least once a week, making debit the preferred method for essentials like groceries and gas. But it’s not just about convenience—debit provides a crucial sense of control. With debit, there’s no risk of racking up debt, and every purchase comes straight out of a bank account. This direct control of spending allows this younger demographic to manage their money without relying on credit, which itself can feel like a step toward financial independence. 

The shift toward debit also makes sense in light of the economic pressures Gen Z is faced with. Many are entering the workforce confronted by a skyrocketing cost of living, but these pressures aren’t limited to day-to-day financial challenges. Gen Z has also seen Millennials and Gen X struggle under the weight of student loans, with average student loan balances reaching $48,733 and $42,637, respectively. These and other financial burdens have led to a growing fear among the younger generations of accumulating debt of any kind themselves. Debit offers more control—it’s safer, without the risk of accumulating interest or adding to their debt load.

Demand for digital solutions drives change

Embracing debit goes beyond physical cards for this generation—digital solutions power their wallets. With 90% of Gen Z using some form of digital payment, debit cards are the default option in wallets like Apple Pay and Google Pay. Tapping to pay or scanning a QR code is second nature and expected at the point of sale.

And as demand for digital payments continues to grow, it's clear that seamless and secure solutions are precisely what Gen Z is looking for. Digital asset payments work a lot like debit—either the funds are there or they aren’t. Unlike credit, which can make it easy to lose track and pile up debt, digital assets can help anyone stay in control of what they spend. Platforms like Flexa, which make integrating digital assets into everyday transactions easier, are well-suited to meet these expectations. As payment methods keep evolving, having tools that cut out the friction and speed payments up are becoming essential—especially for a generation that values convenience and efficiency.

Credit takes a step back (for now)

Unlike previous generations, today's younger consumers are cautious about credit. Debit cards allow them to manage daily expenses like groceries without the fear of falling into debt. They often categorize their spending—reserving debit for everyday purchases and opting for credit or Buy Now Pay Later (“BNPL”) services for bigger-ticket items. This approach keeps their finances organized and under control.

Security is also a significant concern for this generation. Debit cards can offer stronger fraud protection, which is especially important when using payment cards in situations where they can’t be easily secured, like for online and in-app purchases. Flexa focuses on secure payments that are completely fraud-resistant by their very nature, helping to ease one of Gen Z's biggest concerns of making safe and simple payments.

Flexibility Is key: BNPL and alternative payment methods take off

Gen Z doesn’t limit themselves to just debit or credit. They’re embracing flexible payment options like BNPL services and, increasingly, digital assets. BNPL platforms like Affirm and Klarna enable payers to spread out the cost of their purchases over time, providing flexibility without the long-term risks of traditional credit. At the same time, digital assets are gaining popularity as alternative methods of storing value. Paying with digital assets offers new and more flexible ways to engage in commerce, allowing Gen Z to spend what they have, where they have it. This gives Gen Z ever greater control over their finances without having to rely on traditional credit systems or worry about accumulating debt.

A recent study shows that 94% of Gen Z trust digital assets during times of economic uncertainty, more than any other generation. While older generations lean toward physical assets like gold to keep their investments safe, Gen Z is far more optimistic about digital assets, seeing them as a modern, safe form of money.

Flexa makes it easy for anyone to use digital assets for everyday transactions, delivering the fast, secure, and simple payments experience they expect.  By offering more flexibility than traditional systems, Flexa aligns perfectly with their preference for modern, safer financial options. With digital assets, there’s no risk of racking up debt, because it’s all about spending what you have.

Looking ahead: The future of payments

This shift toward seamless, friction-free payments is forcing sellers to adapt. Gen Z wants payment options that give them control and flexibility, like digital assets. Flexa makes accepting digital assets just as easy as debit, but with the added perks of lower fees and better security. For merchants, offering these smooth, secure payment options is a great way to win over Gen Z and keep them coming back, because it meets them where they’re most comfortable paying. And as always, those who can offer seamless, value-driven payment experiences will have the upper hand in winning long-term loyalty.

As their purchasing power grows, Gen Z’s habits will shape the future of payments. Debit will likely remain a top choice while digital assets continue to develop in popularity and availability. Now is the time for sellers to adapt by offering flexible, secure, and value-driven payment options that align with this digital-first, practicality-focused generation.

Are you looking to make your payments faster and more secure? Learn more about Flexa Payments, our omni-channel acceptance solution, and get in touch to find out how digital assets can enhance your existing payments stack today.