April 01, 2026
How Gen Z Is Pushing the US Towards a Cashless, Cardless Future
Digital wallets were supposed to be a generational curiosity. Something younger consumers dabbled with while everyone else kept their cards. New data shows the physical wallet is fading and turning into a digital one, and Gen Z is the reason why.
New research from Global Payments finds that digital wallets are now the most-used online payment method for 39% of Americans aged 18 to 24, and 41% of those aged 25 to 34. Among 35- to 44-year-olds, the figure is 33%. Even among consumers aged 65 and over, 9% say digital wallets are their preferred option online.
The US remains one of the most card-dependent markets in the world, with cards accounting for 49% of online spending and 71% of in-store spending in 2025. However, direct card usage online is forecast to fall to 43% by 2030, and to 64% in-store, as consumers increasingly route transactions through wallet interfaces rather than reaching for plastic.
The data predicts digital wallet spending in the US will grow at 10% annually between 2025 and 2030, reaching $4.1 trillion. Globally, digital wallets already lead, accounting for 56% of online and 33% of in-store spending in 2025.
Payments Are Personal Now
A shopper who expects to tap their phone at checkout, or complete a purchase in seconds on mobile, will register it when a merchant has not kept up. Retailers that offer genuine payment flexibility are seeing direct revenue benefits. A global study by ACI Worldwide found that 65% of retailers say offering more payment options drives revenue growth, and 96% of those working with multiple acquirers report increased revenue as a result.
Bob Cortopassi, president and chief operating officer of Global Payments, explained what this means for merchants: “The future belongs to businesses that understand how their customers want to pay. As expectations shift toward choice and flexibility, merchants must evolve their payment systems to serve every demographic — and those that do will unlock the next wave of growth.”
A Generational Inflexion Point
Gen Z arrived in the consumer market treating mobile payments as the default. Since card lives in their phone, merchants need to think seriously about checkout design, loyalty integration, and the end-to-end digital journey.
Digital wallets are increasingly functioning as loyalty platforms, storing rewards, sending timely offers, and giving brands a direct, always-on connection to customers. Research from Vibes finds that 57% of consumers are more likely to engage with brands that offer digital loyalty cards, and half of wallet users check theirs multiple times a week.
Payment apps across all channels are projected to process $23.4 trillion globally by 2030. Merchants who treat the payment moment as a pure transaction risk missing a touchpoint that either confirms or undercuts everything else the customer experience has built.
