Gen Z is setting the pace—can your business keep up?

If you’re in consumer lending, insurance, or utilities, and not actively thinking about Gen Z, you’re overlooking a significant growth opportunity. Born between the mid-1990s and early 2010s, Gen Z is entering adulthood with strong digital habits and high expectations, reshaping how bills get paid.

According to ACI Worldwide’s 2025 Speedpay Pulse Report,¹ Gen Z is driving a shift toward faster, more flexible payment experiences. They want convenience, transparency, and control. They’re not afraid to walk away from providers who don’t deliver on their promises. For lenders, this means adapting to meet Gen Z’s preferences isn’t optional; it’s essential.

Gen Z’s payment preferences are unmistakably digital, and they’re setting a new standard for how bills should be paid. According to PYMNTS, 85% of Gen Z prefer digital payments over cash, and 91% are actively adopting mobile-first payment methods.² This generation isn’t just comfortable with technology; they expect it to work seamlessly. For lenders and service providers, this means offering flexible, mobile-friendly billing options isn’t just a nice-to-have—it’s a loyalty driver. Gen Z is quick to reward brands that make payments easy, and just as quick to leave those that don’t.

Understanding Gen Z’s payment expectations

Gen Z isn’t just tech-savvy; they’re tech-native. They’ve grown up with smartphones, instant everything, and digital-first experiences. So, it’s no surprise that:

• They want things fast: Nearly 84% of Gen Z and Millennials have made urgent or same-day bill payments.¹
• They live on their phones: Mobile wallets, apps, and online platforms are their go-to tools for managing money.
• They’re open to AI but still want a human when it counts: 42% of Gen Z are comfortable with AI support, but most still prefer speaking to a real person when resolving issues.¹
  

And it goes even deeper. According to PYMNTS, Gen Z engages with 425 digital touchpoints per month, not out of screen addiction, but to create a seamless, system-level lifestyle. Their financial behavior is built around frictionless, functional experiences, and they’re leading—not following—the shift toward digital payments and banking.³

Meanwhile, The Paypers reports that Gen Z’s demand for customization and premium experiences is reshaping how financial institutions approach product design. From choosing metal credit cards to tailoring their banking plans, Gen Z expects flexibility and personalization. They reward brands that deliver it with loyalty and engagement.

Gen Z is not just borrowing money; they’re paying utility bills, signing up for insurance, and managing monthly expenses. If your business touches any of those areas, Gen Z is already your customer or will be soon.

Want Gen Z’s business? Here’s how to win it

1. Speed is non-negotiable: Gen Z expects immediacy. Waiting days for a payment to process or a loan to be approved feels outdated. Real-time payments, instant notifications, and fast approvals aren’t perks—they’re baseline expectations. If you’re not delivering speed, you’re losing relevance.
2. Mobile is the primary channel: Mobile isn’t just a channel, it’s “the” channel. Gen Z manages their finances through apps, not desktops. A seamless mobile experience with intuitive design, biometric login, and smart push notifications is now a table-stakes requirement.
3. Flexibility in payment options: Gen Z embraces variety. From Apple Pay and Google Pay to Venmo or Zelle, they expect to pay their way. Limiting options to ACH or credit cards sends the message that your brand isn’t keeping up.
4. Smart AI with human backup: Gen Z is comfortable with AI for quick answers, but when things become complicated, they seek genuine help. A hybrid support model, combining an automated approach where it makes sense and a human one where it matters, is the key to earning their trust.

What utilities need to know about Gen Z payment preferences

Utility providers are often seen as traditional, but Gen Z expects the same digital ease from them as they do from their favorite apps. This generation values speed, transparency, and personalization. They’re quick to disengage from brands that don’t deliver. Offering mobile wallet payments, real-time billing updates, and responsive support channels can turn a routine bill into a frictionless experience. 

According to Forrester’s report, “The US Real-Time Payments Opportunity for Consumer-Facing Businesses,” real-time payments are gaining traction in the US, helping both consumers and businesses manage their finances more effectively. The report emphasizes that digital business professionals must prepare for rising expectations regarding instant, secure, and flexible payment options, especially in industries such as utilities, where bill payments are frequent and time sensitive. 

Meanwhile, Gen Z’s desire for customization and elevated experiences is reshaping expectations across industries. This generation doesn’t settle for one-size-fits-all solutions—they want choice, control, and convenience in every interaction. Whether it’s how they pay for essential services or how they engage with a brand, Gen Z expects options that reflect their preferences and lifestyle. 

What insurers need to know about Gen Z payment preferences 

Insurance is another area where Gen Z is beginning to engage—whether it’s renters, auto, health, or even pet coverage. This generation approaches insurance with a digital-first mindset. They want to clearly understand what they’re paying for, manage their policies from their phones, and make payments instantly and securely. Traditional paper statements and long call center wait times don’t align with their expectations. 

To stand out, insurers need to simplify the experience from quote to claim. That means offering mobile-friendly platforms, transparent pricing, flexible payment options (including digital wallets), and responsive support. Gen Z also values personalization, coverage that adapts to their lifestyle, not the other way around. Providers who meet these expectations won’t just attract Gen Z customers—they’ll earn their loyalty. 

Consumer finance and lending perspective 

As digital expectations continue to rise, organizations across various industries are being challenged to rethink how they engage with customers, especially when it comes to payments. Convenience, speed, and transparency are no longer differentiators; they are baseline requirements. In this environment, companies that prioritize seamless payment experiences are better positioned to earn trust and drive long-term loyalty. 

In a digital-first world, speed, simplicity, and self-service are no longer competitive advantages—they are competitive imperatives,” said Ron Schultz, Head of ACI Speedpay.

He continued, “Customer loyalty today is built in moments where payments are instant, seamless, and frictionless, grounded in trust and customer centricity. Billers who meet the customers where they are not only elevate the payment experience but also drive tangible business value—from faster collection at lower cost to greater efficiency at scale.” 

The bottom line

Gen Z is here, and they’re not waiting. Whether you’re a lender, utility provider, or insurer, staying relevant means moving quickly, thinking mobile, offering flexible payment options, and being where Gen Z lives. This isn’t about reinventing your business model—it’s about evolving to meet the expectations of a generation that values speed, transparency, and personalization. Those who adapt will earn their attention, their trust, and their loyalty. 

Connect with John on LinkedIn for regular updates on payment innovation opportunities for lenders, and head here to learn more about ACI Speedpay.

Sources:

¹ 2025 ACI Speedpay Pulse Report 

² 85% of Gen Z prefer digital Payments to Cash. PYMTS.com 2024 

³ The Gen Z Decoder Ring: Gen Z isn’t different. They’re digital by default. PYMTS.com 

⁴ Gen Z: the generation that chooses—and chooses the extra. Thepaypers.com