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Insights and Expertise

Gen Z: The mobile-first generation

driving change in travel payments

By Kamran Hedjri rather than spend amount are gaining traction. Nearly 70
PXP percent of Gen Z surveyed said they'd be more likely to
remain loyal to a travel brand if it offered immediate, dy-
eneration Z is redefining both travel and pay- namic rewards. Then there's the question of FX and cross-
ments, and that matters for everyone in the border transparency. Gen Z travels globally but expects
merchant and payments value chain. These payments to feel local. This means clear pricing in native
G digital-first consumers, born between 1997 currencies, real-time FX rates, and payment options that
and 2012, were raised on instant gratification, on-demand don't charge hidden fees. The ability to offer multi-curren-
everything and intuitive user interfaces. When they book cy pricing at checkout and local language support is criti-
a trip, train, airline, car or hotel, they expect a harmo- cal for global travel merchants to have a seamless payment
nized, connected digital experience. According to PXP's experience.
exclusive Gen Z research, 80 percent of this cohort now
book travel via smartphones. They are deeply influenced Merchants who can't adapt are at risk. The Gen Z traveler
by social media trends, peer reviews and influencer rec- won't call your support line if the checkout fails; they'll
ommendations. They make decisions quickly, often spon- abandon, block and move on. Payments must be instant,
taneously, and usually inside mobile apps. At checkout, intuitive and invisible. For payments professionals and
they expect one-tap functionality, instant confirmations Payment Service Providers, this shift is also an opportu-
and zero friction. nity. The travel and tourism sector is rebounding fast post-
pandemic, and Gen Z is one of its biggest growth drivers.
Debit cards still lead the pack in terms of preferred pay- Investing in infrastructure that caters to their digital pref-
ment methods, but wallets, buy now/pay later (BNPL), and erences is a future-proof move. Real-time payment capa-
alternative options are catching up fast. Nearly 60 percent bilities, orchestration for multiple providers and back-end
of Gen Z respondents said they expect travel platforms to analytics that track conversion drop-offs are no longer
support alternative payment methods, including Apple nice-to-haves. They're essential.
Pay, Google Pay, Klarna and regional wallets like BLIK or Creating frictionless journeys
Pix.
From booking to boarding: A seamless payment flow With the right kind of support, travel businesses can be
empowered to accept whatever form of payment Gen Z
As payment technology evolves, generational expecta- travelers prefer—seamlessly. This should include:
tions ramp up. Gen Z views payments as an integrated • Smart routing, real-time risk checks, and flexible
part of the experience. If something goes wrong at check- checkout customization across web, mobile and in-
out, they associate the entire brand with friction. In fact, app environments.
Gen Z is twice as likely as older generations to abandon a • Tokenization capabilities to ensure secure, one-click
checkout if their preferred payment method is missing or
the process takes too long. payments for returning users
• Built-in fraud detection tools to help strike the right
Security is also a concern, but it needs to feel seamless. balance between speed and safety
Gen Z doesn't want to input a password five times or solve • Infrastructure designed to scale as travel merchants
a captcha when booking a last-minute train. They prefer grow, without sacrificing resilience.
biometric login, instant SMS authentication and tokeniza-
tion technologies that work invisibly in the background. • Features that help merchants gain insight into Gen
They value security, but they won't tolerate it slowing them Z spending habits, including analytics tools to help
down. In addition, this generation is more likely to travel them understand drop-off points, measure pay-
in groups and split costs. That makes shared payments, ment method performance, and optimize conversion
bill-splitting and real-time digital receipts an important through A/B checkout testing.
UX feature, especially for group bookings, accommoda- In a world where Gen Z sets the tone for what's next, mer-
tion and event tickets. Solutions that cater to this reality chants can keep pace—and stay ahead.
will win loyalty faster.
Kamran Hedjri is group CEO at PXP Financial, an end-to-end payment
Loyalty, transparency, and social media platform that provides a single unified payments platform to accept
define Gen Z transactions payments online, on mobile and at the point of sale. Powered by in-
house acquiring, 120+ alternative payment methods and financial
Loyalty itself looks different for Gen Z. While tradition- services, PXP processes over EUR 22.7 billion annually. To find out more
al points systems still have value, Gen Z cohorts expect about PXP, visit www.pxpfinancial.com. Contact Kamran Hedjri at
smarter personalization. Gamified loyalty, rewards inte- www.linkedin.com/in/kamranhedjri/originalSubdomain=gi.
grated into checkouts, and incentives based on behavior
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