A new survey suggests the checkout counter may soon be extinct, at least for anyone under 40. According to payments infrastructure provider NMI, 64% of Gen Z and Millennials say that if a business doesn’t offer in-app payments, they’ll take their money elsewhere.
The report, based on a survey of 1,000 U.S. adults, shows that consumers, especially younger ones, are losing patience with outdated payment options. Whether it’s tapping a phone, scanning a fingerprint, or simply using Face ID, nearly 60% of respondents said the best transactions are the ones that “feel like they never happened.”
Parents, too, are racing toward the checkout-free future. Among those with children under 25 at home, 72% say they’d prefer to pay for everything through an app — a sharp jump from 53% of the general population. If your payment process still relies on swipes, chip readers, or — heaven forbid — cash, you might be haemorrhaging customers.
Even subscription payments are seeing a generational divide, with nearly 70% of Millennials and 66% of Gen Zers saying they prefer recurring payments for frequently used services.
Peter Galvin, chief growth officer at NMI, said: “Merchants beware! Younger generations are setting the pace when it comes to payment technology, and businesses that want to remain competitive need to keep up. Millennials, Gen Z, and busy parents expect seamless, app-based, and subscription-style payments that fit into their daily lives. And if businesses can’t meet those expectations, these customers are quick to shift their loyalty and move on. To succeed in this evolving landscape, brands must prioritise flexible, mobile-first solutions that cater to how younger audiences actually live, shop, and pay.”
Not everyone’s ready for change
However, not everyone’s on board with the latest payment trends. Baby Boomers remain split — 43% say they’re uncomfortable with biometric authentication, though 40% say it makes payments faster and safer. Lower-income consumers also face a usage gap: over half use in-app payments only a few times per month, yet nearly as many say they’d use them exclusively if they could.
More than half of all respondents (59%) believe merchants must offer app-based payments, and 50% say they’d choose one business over another based on that single factor.
The industries facing the most pressure are food and beverage, with 68% of consumers wanting to pay via app at restaurants, coffee shops, and delivery services. Retail (53%), entertainment and recreation (45%), and travel (45%) follow close behind. Even services like car washes and plumbing are feeling the heat: nearly 40% of respondents want app payments there too, rising to almost half among parents.
Merchants are the first to bear the brunt of these consumer preferences. Yet, the ripple effect is even more pronounced for the software platforms that power them. Many vertical SaaS providers still fail to embed modern payments into their tools, leaving businesses with fragmented checkout experiences that feel stuck in the past.