By Alex Burridge, Director, Marketing
A new report popped up in my newsfeed that really drove home a point that we have been making for awhile: Gen Z loves digital wallets.
Love may actually be an understatement. It’s no surprise when you consider that Gen Z are those born after 1996, i.e., digital natives. They have lived their entire lives with internet connectivity, and likely had their first cell phone before they reached high school.
This context helps explain the comfort Gen Zers have with mobile payments. The Federal Reserve Bank of Atlanta shared that 85% of Gen Zers made an in-store or online payment using their phone in 2023.
To put that in proper perspective, it’s estimated that by 2028, 68% of U.S. adults will be mobile wallet users. That means that three years from now, U.S. adults will still trail current Gen Z usage by 17%.
The Immediate Need for Mobile Wallets
The data makes clear that billers must prioritize adding digital wallets to their menu to cement closer relationships with younger bill payers, who will continue to make up greater percentages of the bill-paying base.
While this may seem more of a concern for organizations in competitive industries, it’s imperative that all billers view their bill as competing against every other bill. According to the U.S. Bureau of Labor Statistics (BLS):
With costs rising and budgets tightening—especially for younger consumers who may not be earning large salaries—limiting payment flexibility is a sure way to lose ground to those billers who offer it in spades.
With costs rising and budgets tightening—especially for younger consumers who may not be earning large salaries—limiting payment flexibility is a sure way to lose ground to those billers who offer it in spades.
A telecom provider that offers digital wallets has a far better chance of driving on-time payments than a water company that limits choice to cards and checks.
The Key to Digital Wallet Expansion
Many billing and payment providers come with the promise of digital wallets, but few can deliver without necessitating added gateways or even contracting with third-party providers. All this does is add complexity (and cost) to the platform, which makes these payments harder to track while introducing potential security gaps.
A key Paymentus differentiator has always been that our solution is specifically engineered to offer seamless payments expansion. Organizations wishing to add digital wallets can do so simply by asking. This ensures a seamless customer experience and real-time reporting of digital wallet transactions.
The data is clear but the pathway is even clearer. If you’d like to learn more about how you can expand to meet the billing and payment preferences of all customers, let’s talk! Our team can discuss your goals and challenges, and give you a tour of our best-in-class billing and payment solution.
