A study released by B2B order-to-cash software and digital payments Fintech Billtrust reveals how Generation Z is “fundamentally” transforming payment behaviors and expectations.
With traditional payment methods falling to historic lows and digital adoption reaching saturation levels, the research signals a “turning point in how future business leaders will approach payments and financing.”
Billtrust’s 2025 Gen Z and Digital Payments Study — drawing insights from 1,000 U.S.-based Gen Zers aged 18-29 — shows this generation “isn’t just embracing digital payments, they’re abandoning traditional methods entirely and expecting the same innovation from their employers that they demand as consumers.”
Sunil Rajasekar, Billtrust CEO said:
“What started as a preference for digital payments in 2019 has evolved into something far more significant. Gen Z has completely redefined what ‘normal’ looks like in payments, making digital wallets the default, embracing Buy Now Pay Later (BNPL), and showing little tolerance for outdated payment methods.
Rajasekar added:
“As Gen Z moves into business decision-making roles, their attitudes and behaviors often predict trends in the B2B market. As B2B payment experts, we continuously analyze the factors that will impact and disrupt our industry. It’s essential for businesses to stay attuned to these trendsetters and observe how their payment preferences and perspectives are evolving.”
Key findings include:
- Digital Payment Saturation Reaches New Heights: 93% use P2P platforms and 91% use mobile wallets, with over 40% using each more than five times monthly, marking digital payments as not just preferred but expected.
- BNPL Adoption Explodes: Buy Now, Pay Later usage nearly doubled from 26% to 46% in just one year, signaling a dramatic shift in financing preferences that could reshape credit markets.
- Traditional Payment Methods Face Extinction: Digital wallets and cards now account for 92% of preferred payment methods, while cash hits a historic low of just 7%, highlighting a generational break from traditional payments.
- Credit Behavior Shows New Patterns: While 81% report regular credit card usage, only 47% pay balances in full monthly, with 28% consistently paying less than half, suggesting a fundamental shift in how Gen Z approaches credit and debt.
- Payment Experience Becomes Deal-Breaker: 81% would abandon brands over poor payment experiences, with 65% leaving after just 2-3 negative interactions, making payment innovation crucial for customer retention.
Bob Purcell, Billtrust CFO said:
“These findings tell us something crucial: payment innovation isn’t just about convenience anymore – it’s becoming a make-or-break factor in business relationships. When we see that Gen Z will walk away from brands over payment experience and expect the same digital innovation from employers that they get as consumers, it’s clear that modernizing payment systems isn’t optional. It is essential for staying competitive.”
About the Study
Billtrust’s Gen Z and Digital Payments Study was “conducted in January 2025, surveying 1,000 U.S.-based individuals aged 18-27.”
The study examined payment preferences, financial behaviors and workplace expectations “to understand their impact on future payment landscapes.”
As covered, finance professionals reportedly turn to Billtrust to get paid faster while controlling costs, “accelerating cash flow and maximizing customer satisfaction.”
As a B2B order-to-cash software and digital payments provider, they aim to help the world’s brands move finance forward “with AI-powered solutions to transition from expensive paper invoicing and check acceptance to efficient electronic billing and payments.”
With $1 trillion+ invoice dollars processed, Billtrust explains that it delivers business value “through industry expertise and a culture focused on delivering meaningful customer outcomes.”