TORONTO, August 19, 2024 – How would you like to pay? Seven in 10 Gen Z Canadian adults (69 per cent) have embraced the mobile wallet, and six in 10 (63 per cent) prefer to leave their physical wallet at home for short trips, according to a recent survey commissioned by Interac Corp. (Interac). Gen Z’s use of mobile wallets outpaces all other generations including Millennials (60 per cent), Gen X (44 per cent), Boomers (27 per cent) and the Silent Generation (10 per cent).
Interac transaction data shows that Gen Z’s digital-first habits are contributing to a 27 per cent increase in Interac® Debit mobile contactless payments in the first half of 2024, as compared to the same period in 2023. Nearly two thirds of this generation of mobile wallet users (63 per cent) have loaded their Interac Debit card on their phone, while three in 10 (31 per cent) have taken the steps to set debit as their default payment method. With six in 10 Gen Zs (63 per cent) 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 per cent) want to be more mindful when spending and over half of Gen Z (57 per cent) 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 per cent) Gen Zs say the cost of living is too expensive and nearly six in 10 (59 per cent) 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 per cent) of Gen Zs see the need to develop new habits to stay in control over their finances, and 56 per cent are setting a timeline for this September to introduce new habits.
