Gen Z is driving a surge in mobile wallet usage

Gen Z’s mobile spending

According to the transaction data collected by Interac, Gen Z's digital-first habits helped increase Interac’s debit mobile contactless payments in the first half of 2024 by 27% when compared to the same period in 2023.

Turns out nearly two-thirds of Gen Z mobile wallet users (63%) loaded their Interac debit card on their phone, while 3 in 10 (31%) went the extra step to set debit as their default payment method.

The preference for mobile transactions may be a result of how Gen Z perceives mobile transactions, with 63% of Gen Zs associating mobile transactions with greater speed compared to physical card payments.

At the same time, 62% of Gen Z respondents want to be more mindful when spending, and just over half of Gen Z shoppers (57%) say they want the option to use debit when paying in store or online.

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Gen Z spending habits

While reasons to use mobile-first payments are often motivated by speed and ease, many Gen Z respondents also flagged rising prices and the higher cost of living as reasons for paying attention to finances.

According to the Interac survey, 79% of Gen Zs say the cost of living is too expensive and 59% feel the need to be smarter with their money.

The focus on expenses and smart money management may be a result of back-to-school pressures. Traditionally, September and October is a time when stores experience a boost in sales of clothing and supplies.

For example, in 2023, family clothing stores saw almost twice as many Interac debit mobile purchases in September and October compared to sales volume in January and February.

Over half (54%) of Gen Zs see the need to develop new habits to stay in control over their finances, and 56% are setting a timeline for this September to introduce new habits.

"As their expenses increase going into the fall, younger Canadians are focused on making their money go further,” Wolff said. “This generation is among the worst hit by cost-of-living pressures, and it's no wonder that they see the value of Interac Debit as a smart and controlled approach to digital spending.”

Survey methodology

The survey was commissed by Interac and completed by Hill and Knowlton, a market research firm that interviewed 1,500 Canadians beween July 11 to July 16. 2024.