Interac says that the younger generation known as Gen Z is driving a surge in mobile spending. According to Interac Corp., Interac Debit mobile purchases increased by 27% year-over-year in the first half of 2024.
Interac commissioned a survey that discovers Gen Z’s (ages 18-27, as per the parameters used in the study) use of mobile wallets outpaces all other generations, including Millennials (28-43) at 60%, Gen X (44-59) at 44%, Boomers (60-78) at 27%, and the Silent Generation (79+) at 10%.
The payments company finds that the digital-first habits of Gen Z consumers is contributing to the increase in mobile contactless payments. Nearly two thirds of this generation of mobile wallet users (63%) have loaded their Interac Debit card on their phone, while three in 10 (31%) have taken the steps to set debit as their default payment method. Six in 10 Gen Zs (63%) associate mobile transactions with greater speed than physical card payments.
Additionally, the survey found that two thirds of Gen Z (62%) want to be more mindful when spending and over half of Gen Z (57%) say they want the option to use debit when paying in store or online. This may be tied to the fact that nearly eight in 10 (79%) Gen Zs say the cost of living is too expensive and nearly six in 10 (59%) feel the need to be smarter with their money. Paying via debit, of course, does not take on any debt since it pulls from money already in your account versus credit to be deferred and paid later.
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,” says Glenn Wolff, Group Head and Chief Client Officer, Interac. “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.”
The survey was conducted by Hill & Knowlton on behalf of Interac Corp. The company used the Leger Opinion online panel to survey 1,500 Canadians over the period of July 11 to 16, 2024. Sampling was done within age, gender, and region quotas. The length of the survey was less than 10 minutes. Data was weighted on age, gender, and region according to 2021 census figures.