New data from B2B payments company, Billtrust, that looks at Gen Z’s behaviours and views on payments in an effort to see how they’ll impact the entire payments ecosystem as they continue to enter the workforce in record numbers and accelerate the overall consumerisation of IT.
To do so, the company commissioned the Billtrust Generation Z And Digital Payments Survey, a study administered to over 750 Gen Z respondents aged 18-23.
According to the report, Gen Z is trading-in physical wallets for digital wallets, with 79% of Gen Z reported using P2P payment platforms at least once per month. Despite their youth, they are already using P2P payments more than Millennials (75%) and Gen Xers (69%).
Nearly a third of Gen Z has never used a paper check. With 51% of B2B transactions still paid for by check, this could signal a precipitous drop for checks as younger generations continue to enter the B2B space.
Gen Z may be more pragmatic than given credit for. When asked if they were more concerned about the occurrence of fraud when using payments or banking solutions from traditional providers or next generation Fintech providers, 60% of Gen Z said they are equally concerned about both.
However, 24% of Gen Z noted they were more concerned with fraud while using payment or banking services from Fintech providers.
They are also weary of FinTechs when it comes to their data. When asked “Would you continue to do business with a company if your financial data was breached?” ~60% of respondents reported that it depends on how the affected company responded, while 33% reported that they would drop the company altogether.
Gen Z expects fast payments but aren’t quite ready for cryptocurrencies. While Gen Z expects to be paid by quickly, with >50% reporting that they currently receive payment from their employer via direct deposit (ACH), somewhat surprisingly, the majority of Gen Zers (66%) reported that they would not be open to receive Bitcoin and other cryptocurrencies as a form of payment in the future.
The full results of the study are here.