As Gen Z consumers (ages 18–28) effortlessly shift between physical and digital payment methods, their demand for flexibility is reshaping innovation across the payments ecosystem.
Primax released its fifth annual Primax Payments Pulse research study, which gauged the current state of payment preferences among financial institution customers. The study examines the factors that influence these trends, including differences in life stages and economic events. This previous blog explores more of those key findings. The study also suggests ways that banks can optimize offerings by adapting to evolving preferences to better serve their customers — now and into the future.
As expected, the study also revealed that generational preferences continue to evolve, shaped by technology, trust and convenience. Here are some key generational findings from this year’s study:
Baby Boomers (Boomer+)
Boomer+ consumers, ages 61 and above, largely prefer to pay with a physical credit card (43%). They are also practical purchasers, as 86% say that when retailers add a fee to credit purchases, they are more likely to pay with cash or debit card instead. This generation balances convenience with cost-conscious spending. Life stage transitions are limited, with 74% reporting no significant life changes in the past year, leading to a low interest in new lending products. Boomer+ consumers report the highest trust in their financial institution (96%), but 80% remain concerned about identify theft, despite only 3% experiencing it in the past year. They have strong engagement across traditional and digital channels: 59% visit branches, 51% bank online and 27% use mobile apps.
- Takeaways: Maintaining the strong trust of Boomer+ customers is key — financial institutions should focus on delivering secure, reliable experiences across traditional and digital channels. Banks should prioritize strengthening authentication measures, communicating clearly about security protections and ensuring seamless support between human and digital touchpoints to sustain Boomer+ confidence and loyalty.
Generation X
Gen X (ages 45-60) has the highest preference for debit (48%) out of any generation. Debit is their top pick across everyday buying scenarios, revealing their preference for simple, direct transactions that allow them to stay in control of their finances. This demographic’s banking activity spans a variety of channels: 45% visit branches, 41% go online and 39% use mobile apps. Many also rely on phone calls (32%) and ATMs (34%). Some are navigating career shifts — 14% have changed jobs in the past year — or new financial goals, and they continue to consistently and confidently manage their finances across digital and in-person channels.
- Takeaways: Since Gen X consumers consistently use debit for everyday purchases and engage across digital and in-person channels, financial institutions should prioritize frictionless debit experiences that work seamlessly no matter the channel — whether online, on mobile or at the point of sale. By strengthening ease of use and cross-channel consistency, banks will stay relevant and convenient to this generation’s needs.
Older Millennials
Older Millennials, ages 37-44, draw on experience and digital know-how to manage busy, complex lives. They are the most frequent online shoppers of any generation — 83% make online purchases a few times a month and nearly half (45%) shop online weekly, often using a credit card stored in a digital wallet (28%). They balance human touch and self-service banking options: 39% visit a branch or call by phone and one-third rely on ATMs (39%), mobile apps (30%) or online banking (26%). Older Millennials are well-established in their careers and personal lives, balancing career, family responsibilities and a wide range of financial commitments. Their top lending interests — credit cards (54%), personal loans (28%) and auto loans (24%) – show a generation focusing on maintaining financial momentum while balancing long-term goals.
- Takeaways: Older Millennials are defined by financial complexity, with digital habits and evolving financial goals. Financial institutions can better serve this generation by enhancing credit experiences that enable growth and help them reach key milestones in this life stage. Banks should offer flexible, digitally integrated credit solutions to strengthen engagement and support Older Millennials’ continued financial progress.
Younger Millennials
Younger Millennials (ages 29-36) are comfortable with digital tools, yet still seek personal interaction. Roughly one-third visit a branch or use an ATM (35%) and just slightly fewer like to engage with their bank through websites (31%) or mobile apps (26%). This generation has widely embraced emerging payment methods: 96% use Peer-to-Peer (P2P) platforms at least periodically and many have experimented with QR code (34%) and text-based (32%) payments. Many Younger Millennials are solidifying careers and households. Sixteen percent (16%) purchased or moved homes in the past year, 14% changed jobs and 10% welcomed a child. Their top lending interests are credit cards (51%) and personal loans (26%). Nearly nine in ten say they would take advantage of educational resources from their financial institution.
- Key Takeaways: Financial institutions can better serve Younger Millennials by strengthening digital payment and lending experiences that reflect how this generation already manages money. With their widespread use of P2P and mobile payments, combined with a growing interest in credit cards and personal loans, this generational cohort has an openness to use multiple tools to meet their financial needs. Banks need to make those products easier to access and manage across channels to stay relevant and support this generation’s financial activity.
Generation Z
Gen Z manages the majority of their financial activity through digital channels, preferring mobile tools that make banking quick and convenient. Seventy-six percent (76%) use mobile wallets several times a month and one in four (27%) interact with their bank through apps, websites or social media — only 15% physically visit a branch. Eight in ten (80%) use AI tools for budgeting and financial planning. Most (78%) feel comfortable allowing AI to make transactions on their behalf if/when that option is available. Gen Z consumers prefer using a variety of payment methods depending upon need. This cohort is in an early but active stage of adulthood, with 15% changing jobs in the past year, 13% purchasing or moving homes and 11% having graduated, had a child or left the job market. Gen Z’s top lending interests include credit cards (42%) and personal loans (26%), with lower demand for long-term products like mortgages (14%). Nearly one in ten (9%) report experiencing fraud or card theft, highlighting the growing importance of security and trust in their financial experiences.
- Takeaways: Gen Z is digitally fluent‚ toggling between cash, cards, wallets and P2P with ease. They also trust having AI assist with budgeting, planning and transactions. Financial institutions can build lasting relationships with Gen Z by offering secure, flexible payment experiences that reflect this generation’s preference for variety and choice. Banks can foster trust and support this generation’s long-term financial growth by connecting innovative payment options with education on digital security and responsible credit use.
Not sure how to best meet the needs of your customers across the generations? Consider partnering with a fintech, like Primax, that can help. It is critical for banks to earn the loyalty of Gen Z, while remaining central to the lives of customers across the generations to stay competitive in an increasingly complex payments landscape.
Discover additional findings that your financial institution can leverage to effectively market to customers and achieve continued growth and success by downloading the full 2025 Primax Payments Pulse white paper now.
