A historic shift in financial power is underway. Over the next two decades, an estimated $84 trillion will transfer from Baby Boomers to younger generations including Millennials and Gen Z, marking the largest wealth transfer in history. But here’s the kicker: this crowd doesn’t bank, spend, or invest like their predecessors.

For businesses, fintechs, and payment providers, this isn’t just a footnote in financial history. It’s a wake-up call. The next generation of wealth holders expects seamless, digital-first, and highly personalized payment experiences. They’re used to instant transactions, mobile wallets, and embedded finance. They value convenience, transparency, and security. And if your platform isn’t delivering? They’ll move on, fast.

The big question is: how can businesses and fintechs evolve to attract and retain this new generation of wealth holders? In this article, we’ll break down the payment preferences of Millennials and Gen Z, the challenges businesses must overcome, and the key strategies for staying ahead in this new financial era.

How Millennials and Gen Z Are Reshaping Payment Preferences

Millennials and Gen Z grew up in a world of instant everything—streaming services, same-day delivery, and real-time social media updates. So it’s no surprise that when it comes to managing money, they expect payments to be just as fast, seamless, and intuitive.

Here’s what sets their payment habits apart:

1. Digital-First, Mobile-Always

Forget checkbooks and waiting in line at the bank. For Millennials and Gen Z, their smartphone is their financial hub. 98% of Millennials and 99% of Gen Z use mobile banking. 

Mobile wallets like Apple Pay and Google Pay are go-to payment methods. In addition, peer-to-peer (P2P) transfers through apps like Venmo or Cash App in the US or Interac e-Transfer in Canada are second nature. If a payment experience isn’t optimized for mobile, it’s already outdated in their eyes.

2. Embedded Finance and Frictionless Payments

Younger generations expect payments to be invisible. Whether it’s one-click checkout on your storefront, tapping a phone at checkout, or paying seamlessly inside an app, they prefer payments that blend into the experience rather than feeling like a separate step. 

In fact, 39% of Gen Z consider entering a PIN to be a pain point. This is why embedded payments—integrating payments directly into platforms (think ride-sharing apps, social media, or gaming)—are growing rapidly.

3. Personalization Over One-Size-Fits-All

Millennials and Gen Z don’t just want a functional payment platform. They want a smart one. Features like AI-driven spending insights, custom notifications, and dynamic rewards help them feel in control of their finances. They value platforms that understand their habits and offer personalized recommendations, such as budgeting tools, investment suggestions, or tailored cashback offers.

4. Security and Transparency Are Non-Negotiable

Trust is everything. These generations grew up alongside data breaches, identity theft, and online fraud. They demand strong security features like biometric authentication, real-time fraud alerts, and encrypted transactions. At the same time, they also expect simplicity and transparency—no hidden fees, no confusing fine print.

How Businesses and Fintechs Can Prepare for the Wealth Shift

Winning over Millennials and Gen Z means creating payment experiences that feel effortless, intuitive, and built around their needs. Embracing innovation now will best position your business to capture the generations inheriting trillions. Here’s how:

1. Prioritize Real-Time and Embedded Payments

Speed matters. Businesses and fintechs need to ensure that transactions—whether P2P transfers, high-ticket purchases, or business payments—are instant and seamless. Embedded payments should be a key focus, integrating payment functionality directly into platforms, apps, and services. Frictionless, real-time payments create better user experiences, and that’s a competitive advantage for these digital generations.

2. Offer Hyper-Personalized Payment Experiences

Younger consumers expect technology to know them, and payments are no exception. AI-driven spending insights, smart budgeting tools, and personalized rewards help businesses and fintechs provide an experience that feels tailored to each user. Payment platforms that can analyze behaviours and offer dynamic recommendations (like best payment methods or automated savings features) will stand out.

3. Strengthen Security Without Sacrificing Convenience

Millennials and Gen Z expect next-level fraud protection, but they won’t put up with slow, clunky verification processes. The solution? Biometric authentication (face ID, fingerprint scanning), AI-powered fraud detection, and real-time risk assessments. By offering invisible yet powerful security measures, businesses can maintain both trust and speed.

4. Integrate Sustainable and Ethical Payment Options

This generation makes spending decisions based on values. Businesses and fintechs can get innovative with payment options to attract younger users. Try integrating:

• Carbon tracking on transactions (like showing the environmental impact of purchases)
• ESG-friendly investing and payment choices (like highlighting sustainable shopping choices within apps or at checkout) 
• Charitable giving options at checkout

5. Modernize Payment Workflows for the Workplace

As Gen Z and Millennial professionals take on decision-making roles, outdated corporate payment processes—like manual invoicing, delayed approvals, and paper cheques—are becoming a major frustration. Businesses should streamline workflows with automated payment solutions, digital wallets, and fast-disbursing payroll options to attract and retain digitally native employees.

The Future of Payments Belongs to the Digitally Native

Whether as consumers or B2B decision-makers, Millennials and Gen Z demand payment experiences that are instant, seamless, and built around their needs. For businesses and fintechs, the $84 trillion wealth transfer can either be a business risk or an opportunity. 

Those that modernize payment infrastructure, embrace embedded finance, and offer flexible, transparent solutions will thrive. Those that cling to outdated systems risk losing relevance in a world that moves fast.

The next generation of wealth holders isn’t waiting—they’re already choosing platforms that fit their digital-first mindset. Are your payment systems ready?

At DCGroup, we help businesses and fintechs navigate this transition with a menu of fast, reliable, and secure payment solutions tailored to your needs and your customers' expectations. Our platform offers everything from card services to digital wallets, designed specifically to meet the demands of modern consumers. When you're ready to future-proof your payment systems, contact us to learn more.