The payment landscape in the US has undergone rapid changes in recent years that have gone far beyond the initial shift from cash to cards. Generation Z has now become the main driver of a more profound transformation, as it redefines expectations around speed, flexibility, and digital-first experiences. In contrast to previous generations, Gen Z consumers and entrepreneurs are not simply using the fintech tools that are available; they are also helping shape the front end and the back end of payment products.
Gen Z is continuing to gain more control over their own money and is also becoming influential in decision-making roles as founders and operators. As a result, their preferences are gradually setting the standard for payment providers across the country. This change is uniform throughout the US, and therefore, the trend is not restricted to large fintech hubs only. In this post, we will look at how Gen Z businesspeople are influencing digital payments in 2026 and the implications for startups, fintechs, and traditional banking institutions.
Gen Z digital payment mindset: from preference to default
Gen Z considers digital payments as the default mode of money movement, not as an alternative to cash, checks, or even plastic cards. Let’s check the payment methods:
Digital wallets, P2P and mobile first
Recent figures show the extent to which digital payments are being integrated into the daily routines of Gen Z in the US. According to the 2025 Billtrust report, 93% of the Gen Z population uses peer-to-peer apps such as Venmo or Zelle, and 91% use mobile wallets such as Apple Pay or Google Pay, making adoption virtually universal.
“Gen Z’s shift to digital payments is nearly universal. Around 93% use peer to peer apps like Venmo or Zelle, and about 91% rely on mobile wallets such as Apple Pay or Google Pay.”
– Billtrust
It’s also confirmed by the frequency: 40% of people use P2P services more than 5 times a month, making these core habits in Gen Z’s mobile-first payment world.
Cash and legacy methods fall rapidly
Traditional payment methods are fading very fast already among this generation. Only 7% of Gen Z say that cash is their favorite mode of payment, and checks don’t have much more popularity either, which shows how far this generation is leaving behind the traditional payment methods.
“Just 7% of Gen Z consider cash their preferred payment method.”
– Billtrust
New payment modes: BNPL, wallets, wearables
Gen Z is not merely moving away from cash and cards; they are also hastening to switch to newer models of payment and financing. According to recent data, BNPL is used by Gen Z almost twice as much in a year, and the proportion of usage in this age bracket has risen to 46%, compared to 26%, which demonstrates a high level of demand for flexible, installment-based payments directly built into the checkout.
“BNPL usage among Gen Z has risen to 46%, nearly double the previous level.”
– PR Newswire
Meanwhile, Gen Z is receptive to new tech-native interfaces. A PXP-linked survey indicates that 41% of Gen Z are open to using wearable payment, and 33% are interested in biometric payment systems such as facial or fingerprint verification, which indicates comfort with smoother and safer methods of identifying and paying.
Gen Z entrepreneurs: shaping payment infrastructure and business models
Gen Z is no longer only a strong consumer base; individuals from this generation are increasingly entering the entrepreneurial sector, starting startups, developing fintechs, and more. Here are some of the main changes Gen Z entrepreneurs are bringing to digital payments in the US by 2026.
1. Designing for Speed, Convenience, and Experience
For Gen Z enterprises and companies selling to Gen Z customers, ease of payment is so important that it can be considered a pillar of brand trust and loyalty. Radial Research has found that approximately 35% of buyers abandon their purchases due to limited or insecure payment options, and younger shoppers, such as Gen Z, are much more likely to give up at checkout if the experience is frustrating.
“About 35% of buyers abandon purchases due to limited or insecure payment options.”
– Radial Research
Consequently, Gen Z entrepreneurs use embedded payment flows without interruption right from the first day. Instant, frictionless checkout, and an intuitive user experience have become principal product priorities regardless of whether it’s peer-to-peer transfers, mobile wallets, or embedded payment APIs.
2. Accelerating BNPL, Micro-Financing, and Flexible Payment Options
The fast uptake of BNPL by Gen Z is redefining the provision of credit and financing at the point of sale. Gen Z consumers expressed interest in BNPL during the 2024 holiday season, with 54% saying they used the service, slightly higher than the 50% who said they used credit cards, indicating that they prefer installment-like payments. The use of BNPL and other microfinancing products is becoming a standard product feature, rather than an add-on, for many Gen Z fintech’s. This shift suggests that giving the option of flexible and instant financing is not an option anymore for the fintech’s that are targeting Gen Z; rather, it’s becoming a core expectation.
“54% of Gen Z used BNPL during the 2024 holiday season, slightly exceeding the 50% who used credit cards.”
– Retail Dive
3. Embedding Payments in Non-Traditional Workflows
Gen Z entrepreneurs consider payments to be just one element of a bigger digital experience, which is why they are major drivers of the adoption of embedded models such as wallets, P2P transfers, and a combination of financial services for freelancers and gig workers. This is consistent with their ease in moving smoothly from one app to another and from one platform to another.
To support this, an NMI survey reveals that 64% of Gen Z and Millennials would go to another store if in-app payments are not offered, emphasizing the need for smooth experiences in non-traditional workflows.
“64% of Gen Z and Millennials would switch to another store if in-app payments are not available.”
– Business Wire
4. Elevating Security, Transparency, and Consumer Control
Gen Z still has faith in trust, even though they also adore fast and convenient services a lot. It has been revealed that 94% of Gen Z regard the ability to personalize payment options very highly, and quite a few also pay attention to transparency and data security. Being clear about the fees, demonstrating data policies, and offering easy-to-reach support are some of the methods to gain trust.
“94% of Gen Z consider personalized payment options highly important.”
– Whop
Young Gen Z entrepreneurs are well aware that integrating these priorities into their products is essential since they realize that if there are payment failures, a lack of communication, or unresolved disputes, trust is readily lost. Security, transparency and user control have turned into the aspects that help to differentiate a company from the competitors, not just the requirements for compliance.
5. Shaping the Future of B2B Payments
Gen Z is changing the face of B2B payments. A new set of founders and operators is channeling their consumer-style expectations not only into vendor payments but also into supplier relationships and payroll. Most of them want seamless, digital-first experiences. Research shows around 70% of Gen Z are highly likely to choose instant payments, and nearly four in five have already received instant disbursements, highlighting a clear shift away from manual invoices and checks.
“94% of Gen Z consider personalized payment options highly important.”
– PYMNTS
This change is leading to the need for different payment methods such as API-driven payments, real-time reconciliation and embedded payment flows. As a result, the traditional financial systems have to upgrade to stay in the game.
2026 Impacts & Founder Actions
Gen Z entrepreneurs are literally reinventing the payment infrastructure in the United States. If founders want to conquer this market and continue to be relevant, they have to integrate digital-native priorities right from the start.
Wallets/P2P/embedded dominate
As wallets, P2P, and embedded payments become more popular than cash and legacy methods, seamless payment flows are turning into the national standard.
Action: Integrate APIs and one-tap checkouts as early as day one for impulse buying and customer retention.
Payment Experience Drives Loyalty
Since the payment experience is an integral part of brand loyalty, it is the seamless and uninterrupted journeys across the apps and platforms that eventually decide who gets long-term trust.
Action: Prioritize mobile-first payment rails over clunky banking integrations.
BNPL and Flexible Financing Become Default
As buy now, pay later and flexible financing are changing from being optional features to becoming a default at checkout, installment-based payments are, in fact, changing the face of e-commerce and gig platforms.
Action: Build a default checkout feature to maximize conversions.
Security and Transparency Shape Trust
Since security, transparency, and user control are all factors that influence payment confidence, trust becomes the main factor in customer choice.
Action: Display clear fees, compliance badges, and instant support upfront.
Neobanks Disrupt Banks, B2B Payments Modernize
Traditional banking workflows are being redefined as neobanks attract deposits and instant payments replace manual invoicing and payroll.
Action: Automate payroll/invoicing by using real-time fintech rails to increase cash flow efficiency.
What to watch in the next 3–5 years
Trends catalyzed by Gen Z will propel the future of payments faster, transforming how apps, platforms, and services process money in the coming years. Let’s look at what can be expected:
- Expansion of Embedded Finance: Embedded finance will grow as wallets, BNPL, lending, and savings become a part of non-financial applications, such as social applications, marketplaces, and gig tools.
- Wider B2B Adoption of Instant Payments: B2B instant payments will become more common as small businesses and freelancers rapidly reduce checks in favor of API-based real-time settlement and reconciliation.
- Rise of Next-Gen Payment Methods: Next-generation payment methods that include wearables, biometrics, stablecoin-enabled wallets, and identity-linked payments will be adopted by Gen Z entrepreneurs.
- New Regulatory Frameworks: As embedded models grow at a very high rate, regulators will tighten rules on BNPL consumer protections, data privacy, and transparency.
- Shift in financial services landscape: Traditional banks and processors need to evolve quickly or give up ground to digital-first fintechs that are meeting Gen Z demands.
FAQs: Gen Z Entrepreneurs & Digital Payments
Quick answers to common questions about how Gen Z entrepreneurs are shaping digital and B2B payments in the US
Why are digital wallets more important than traditional cards for Gen Z businesses?
Digital wallets matter most to Gen Z businesses as they enable quick, safe payments from mobile devices. Different from regular cards, digital wallets can be easily linked to any app or website, offer instant transaction updates, and perfectly fit with the lifestyle of Gen Z, who prefer to handle money digitally and while going around.
What impact are Gen Z entrepreneurs having on B2B payments?
Demand real-time, API-driven B2B flows equal to consumer speed, and reject checks and slow ACH in favor of automated invoicing, mostly focusing on modern approaches in the fintech industry rather than legacy banks.
Are Gen Z entrepreneurs eliminating traditional card payments?
Gen Z entrepreneurs aren’t saying traditional card payments should disappear, but they’re definitely cutting back on cash and older methods. Digital wallets, P2P, and BNPL are taking the lead, while cards still play a role in the mix.
How do modern payment systems help Gen Z entrepreneurs scale?
Advanced systems offer scalable APIs for wallets, BNPL and international payouts, at the same time automating dispute management, analytics in real-time, and compliance to facilitate growth without payment bottlenecks.
How are Gen Z entrepreneurs influencing customer payment expectations?
By offering products with options for invisible payment and multimodal payments such as wallets, biometrics, and BNPL, they are setting a standard for instant, clear, and frictionless experiences that consumers nowadays expect from all brands.
Preparing for a Gen Z–Led Payments Future
In 2026, Generation Z business owners will have a major influence on how both customer and corporate payment systems operate by focusing on speed, ease, clarity, and online-first payments. Digital wallets, peer-to-peer payments, buy-now-pay-later, and embedded financial services are becoming the new normal, while reliance on cash, checks, and older systems continues to decline. New businesses, fintech companies, and established firms will need to adapt to these changes to maintain their position in the market.
Being a digital-first neobank, Cheqly gives you business accounts, physical debit cards, and virtual cards that you can add to your wallets, such as Apple Pay and Google Pay, thus helping founders to manage payments without any hassle. Today, modern, mobile-first banking is a must if one wants to build trust, optimize operations, and be successful in a fast-moving digital economy.
Open a Cheqly business account and manage payments with speed, simplicity, and transparency.