The Green Sheet Online Edition
October 27, 2025 • 25:10:02
Gen Z: The mobile-first generation driving change in travel payments
Generation Z is redefining both travel and payments, and that matters for everyone in the merchant and payments value chain. These digital-first consumers, born between 1997 and 2012, were raised on instant gratification, on-demand everything and intuitive user interfaces. When they book a trip, train, airline, car or hotel, they expect a harmonized, connected digital experience. According to PXP's exclusive Gen Z research, 80 percent of this cohort now book travel via smartphones. They are deeply influenced by social media trends, peer reviews and influencer recommendations. They make decisions quickly, often spontaneously, and usually inside mobile apps. At checkout, they expect one-tap functionality, instant confirmations and zero friction.
Debit cards still lead the pack in terms of preferred payment methods, but wallets, buy now/pay later (BNPL), and alternative options are catching up fast. Nearly 60 percent of Gen Z respondents said they expect travel platforms to support alternative payment methods, including Apple Pay, Google Pay, Klarna and regional wallets like BLIK or Pix.
From booking to boarding: A seamless payment flow
As payment technology evolves, generational expectations ramp up. Gen Z views payments as an integrated part of the experience. If something goes wrong at checkout, they associate the entire brand with friction. In fact, Gen Z is twice as likely as older generations to abandon a checkout if their preferred payment method is missing or the process takes too long.
Security is also a concern, but it needs to feel seamless. Gen Z doesn't want to input a password five times or solve a captcha when booking a last-minute train. They prefer biometric login, instant SMS authentication and tokenization technologies that work invisibly in the background. They value security, but they won't tolerate it slowing them down. In addition, this generation is more likely to travel in groups and split costs. That makes shared payments, bill-splitting and real-time digital receipts an important UX feature, especially for group bookings, accommodation and event tickets. Solutions that cater to this reality will win loyalty faster.
Loyalty, transparency, and social media define Gen Z transactions
Loyalty itself looks different for Gen Z. While traditional points systems still have value, Gen Z cohorts expect smarter personalization. Gamified loyalty, rewards integrated into checkouts, and incentives based on behavior rather than spend amount are gaining traction. Nearly 70 percent of Gen Z surveyed said they'd be more likely to remain loyal to a travel brand if it offered immediate, dynamic rewards. Then there's the question of FX and cross-border transparency. Gen Z travels globally but expects payments to feel local. This means clear pricing in native currencies, real-time FX rates, and payment options that don't charge hidden fees. The ability to offer multi-currency pricing at checkout and local language support is critical for global travel merchants to have a seamless payment experience.
Merchants who can't adapt are at risk. The Gen Z traveler won't call your support line if the checkout fails; they'll abandon, block and move on. Payments must be instant, intuitive and invisible. For payments professionals and Payment Service Providers, this shift is also an opportunity. The travel and tourism sector is rebounding fast post-pandemic, and Gen Z is one of its biggest growth drivers. Investing in infrastructure that caters to their digital preferences is a future-proof move. Real-time payment capabilities, orchestration for multiple providers and back-end analytics that track conversion drop-offs are no longer nice-to-haves. They're essential.
Creating frictionless journeys
With the right kind of support, travel businesses can be empowered to accept whatever form of payment Gen Z travelers prefer—seamlessly. This should include:
- Smart routing, real-time risk checks, and flexible checkout customization across web, mobile and in-app environments.
- Tokenization capabilities to ensure secure, one-click payments for returning users
- Built-in fraud detection tools to help strike the right balance between speed and safety
- Infrastructure designed to scale as travel merchants grow, without sacrificing resilience.
- Features that help merchants gain insight into Gen Z spending habits, including analytics tools to help them understand drop-off points, measure payment method performance, and optimize conversion through A/B checkout testing.
In a world where Gen Z sets the tone for what's next, merchants can keep pace—and stay ahead. 
Kamran Hedjri is group CEO at PXP Financial, an end-to-end payment platform that provides a single unified payments platform to accept payments online, on mobile and at the point of sale. Powered by in-house acquiring, 120+ alternative payment methods and financial services, PXP processes over EUR 22.7 billion annually. To find out more about PXP, visit https://pxpfinancial.com. Contact Kamran Hedjri at www.linkedin.com/in/kamranhedjri/originalSubdomain=gi.
Notice to readers: These are archived articles. Contact information, links and other details may be out of date. We regret any inconvenience.
