Nearly seven in 10 Gen Z adults are embracing mobile wallets, according to a new Interac survey.

A Hill & Knowlton and Leger Opinion online panel in July surveyed 1,500 Canadians, and found that 69% of Gen Z respondents prefer mobile wallets, with 63% of the demo preferring to leave physical debit cards at home for short trips.

Not surprisingly, Gen Z’s use of mobile wallets outpaces all other generations, including Millennials (60%), Gen X (44%), Boomers (27%) and the Silent Generation (10%).

Interac transaction data shows that Gen Z’s habits contributed to a 27% increase in Interac Debit mobile contactless payments in the first half of 2024, as compared to the same period in 2023. Interac numbers show that 63% of this generation of mobile wallet users have loaded their Interac Debit card on their phone, while 31% have taken the steps to set debit as their default payment method.

The numbers reveal that 79% of Gen Zers report that the cost of living is too expensive and 59%  feel the need to be smarter with their money.

“As their expenses increase going into the fall, younger Canadians are focused on making their money go further,” says Glenn Wolff, group head and chief client officer for Interac. “This generation is among the worst hit by cost-of-living pressures.”

Fifty-four percent of Gen Z respondents see the need to develop new habits to stay in control over their finances, and 56% are setting a timeline for this September and back-to-school season to introduce new habits.

Amid inflationary and cost pressures, 62% of Gen Zers want to be more mindful when spending and 57% say they want the option to use debit when paying in store or online.

Last year, Interac data revealed that Gen Z is also way more likely to “use debit cards frequently” (70%) compared to 55% of non-Gen Z Canadians polled.