Apple Pay or We Don’t Pay

78% of Gen Zers say they’d stop shopping at merchants that don’t accept digital wallets like Apple Pay and Google Wallet.
April 12, 2024
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person paying with Apple Pay at a small business

Generation Z—the age group between 18 and 26—has an overwhelming preference for digital wallets, per PYMNTS. So much so that, in a separate study, 78% of Gen Zers said they’d stop shopping at a merchant that didn’t accept digital wallets.

Gen Z prefers digital wallets like Apple Pay and Google Wallet because they provide a convenient and secure way to make in-store and online purchases without exposing sensitive debit or credit card data to risk.

Apple Pay and Google Wallet are free of charge to merchants, but an alarming number of small- to medium-sized businesses (SMBs) have yet to set them up. Recent research of U.S. merchants by J.D. Power revealed that only 57% of small- to medium-sized businesses (SMBs) accept digital wallets, and many do not plan to accept them in the next 3 years.

However, there are drawbacks to going cash-free, as many entrepreneurs may need help understanding how to set up digital payments. Some also prefer to prioritize lower-income households that continue to rely on cash for payments.

One piece of data that could drive more merchant adoption is that 47% of Americans say that having access to digital wallets makes them spend more than when they use physical cards or cash.

SMBs are leaving money on the table when they don’t take the steps to set up cashless payments.

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