What Percent of Gen Z (14-21) Have a Payment App?

The landscape of personal finance is undergoing a transformation, driven by the preferences of younger generations. Gen Z, individuals born roughly between 1997 and 2012, are digital natives who have grown up with access to the internet, smartphones, and social media platforms. This upbringing has shaped their financial habits, leading to an inclination towards digital payment methods over traditional ones. Their comfort with technology translates into their daily transactions, influencing how they manage money and interact with financial services.

Gen Z’s Engagement with Payment Apps

Payment apps have become a part of daily financial life for Generation Z, especially those aged 14 to 21. These applications encompass a range of services, including peer-to-peer (P2P) payment platforms, mobile banking applications with payment features, and digital wallets integrated into smartphones. Recent data indicates that over 80% of Gen Z individuals within the 14-21 age bracket possess a payment app on their mobile devices. More broadly, studies from October 2023 show that 93% of Gen Z members under 25 have adopted a mobile payment app.

The adoption rates for specific types of payment apps are also high within this demographic. For instance, a 2025 study found that 93% of Gen Z aged 18-29 utilize P2P platforms, and 91% use mobile wallets, with many engaging with these services multiple times monthly. 76% of Gen Z (18-25 year olds) use peer-to-peer payment apps, while 73% rely on digital payment apps. This widespread usage underscores their comfort with technology, their demand for convenience, and a shift away from conventional payment methods like cash.

Key Drivers of Adoption

Several factors underpin the widespread adoption of payment apps among Gen Z. Growing up in a digitally saturated environment has instilled a comfort with technology, making app-based solutions intuitive and preferred for financial interactions. This digital fluency translates into an expectation for seamless transactions. Gen Z seeks payment methods that are as effortless as sending a text message, prioritizing speed and minimal friction.

The convenience offered by these apps for managing small transactions is a draw. Peer-to-peer payment apps simplify everyday financial activities such as splitting bills for meals or travel, contributing to group purchases, or managing shared expenses. Peer influence plays a role, as many Gen Z individuals use these apps because their friends and social circles do, creating a network effect that drives adoption. Beyond convenience, payment apps often provide financial inclusion for some young individuals by offering access to financial services without a formal bank account. The embedded security features, such as tokenization and encryption in digital wallets, contribute to a sense of safety and trust in these platforms.

Popular Payment App Choices

Among the 14-21 year old Gen Z demographic, several payment apps have emerged as favorites, including peer-to-peer (P2P) payment applications like Venmo, Cash App, Zelle, and PayPal, which are widely used for sending and receiving money.

Venmo, for instance, was used by 63% of Gen Z in a 2022 study and incorporates social features that resonate with this generation’s digitally connected lifestyle. Cash App is favored for its intuitive interface and social payment capabilities, having evolved into a comprehensive payment solution.

Zelle offers direct transfers to individuals with bank accounts at participating financial institutions, providing quick money movement. PayPal remains a broadly used platform across all age groups, including Gen Z.

Digital wallets, such as Apple Pay, Google Pay, and Samsung Pay, are popular, enabling users to make in-store purchases without physical cards. In 2022, 51% of Gen Z reported regular use of mobile wallets, a figure that surged to 66%. Beyond P2P and digital wallets, mobile banking apps are frequently used, with 57% of Gen Z primarily relying on them and 89% interacting with their bank via smartphone apps.

The “Buy Now, Pay Later” (BNPL) services, including platforms like Afterpay, Klarna, and Affirm, have gained traction. Approximately 42% of Gen Z used BNPL in 2022, often for purchases under $100, as these services provide payment flexibility without credit cards. This preference aligns with their inclination towards debit cards, which are used daily or weekly by 69% of Gen Z.