Payment for Gen Z: Reshaping The Future of Transactions

Payment for Gen Z is more than just transferring money from point A to point B. It is also about how conveniently the transaction is carried out. Born between 1997 and 2012, this demographic has immersed itself in the digital world, making their payment preferences highly related to technology.

Payment for the Gen Z topic cannot be overlooked, as this generation has become one of the largest productive age groups and is growing its purchasing power. Business owners in Indonesia must adapt to the current trend of reshaping payment from offline to online.

Gen Z Demographic

Before we talk about payment, it is essential to understand Gen Z’s background and characteristics. In 2025, their ages ranged from 13 to 28. They are considered teenagers and young adults.

They are raised in the growing period of social media, which makes them connected across the world and gives them better access to current knowledge and news. This also allows them to rely more on gadgets on a daily basis. In fact, it is common for them to only bring a phone instead of a wallet full of cash for their daily life. Some of the physical cards will do, for backup in case the network does not fully work when they are about to pay.

Therefore, payment for Gen Z is mostly about being cashless, with better convenience, and seamlessly integrated into their digitally native lifestyle. Cashless options also frequently come with attractive promotions, cashback, and loyalty rewards, appealing to Gen Z's value-conscious mindset, while also providing digital transaction records that offer a sense of financial control and enhanced security compared to carrying physical money.

Payment for Gen Z

We have broken down the general perspective on how Gen Z payment preferences work. So, now let’s dig deeper into what kind of payment methods work best for this generation.

1. e-Wallet

Based on Visa’s survey in 2023, Gen Z’s top choice of payment method is e-wallet or digital wallet. This is arguably the most dominant payment for Gen Z until this article is written. The wallet is typically linked to their smartphones, allowing for instant cashless transactions.

Some of the most popular e-wallets in Indonesia are OVO, ShopeePay, DANA, GoPay, and LinkAja. Those digital wallets are generally integrated into daily lifestyle super apps, which make it easier for users to pay for their daily needs like food delivery, ride hailing, ticketing, and many more.

2. QRIS

QR Code Indonesian Standard (QRIS) is designed for all Indonesian users, including Gen Z. QRIS is a popular digital payment channel in this country, especially for smaller businesses and smaller transaction nominal.

This digital payment enables Gen Z to pay their invoices since they can use any payment app they prefer, whether it is an e-wallet or mobile banking. They can adjust the source of funds based on their existing balance.

3. Buy Now Pay Later (BNPL)

The Pay Later option has become a rising alternative to installment payment besides credit cards. This payment allows users to make purchases now, but pay the money later using an installment scheme.

BNPL allows users to have access to credit with a typically quick and easy approval process. This payment also offers interest-free installments with a shorter period of installment if users pay on time.

On the other hand, the younger generation, like Gen Z, should take notes on how to manage this payment well since it can increase consumerism and potentially affect on personal credit score.

4. Virtual Account

Gen Z also prefers using digital banks instead of conventional banks because of a catchier design and user experience, lower fees and transparent pricing, also competitive interest rates on savings. They can use a digital bank for direct transfer, QRIS, and virtual account payment.

A virtual account allows users to pay to a series of numbers called a virtual account and not directly to the seller’s bank account. This payment is considered safe to minimize fraud risk from the online seller. So, business owners can include a virtual account from a digital bank like Bank Neo Commerce or BNC to catch up with the current trend in payment for Gen Z.

iFortepay offers easy integration for your business to connect to the BNC virtual account. We provide both integration and non-integration models according to your business needs. You can choose the Payment Link service using Instapay by iFortepay by downloading it on the App Store or the Play Store.

You can also connect your website to accept payment using a BNC virtual account by integrating your website with the Payment Gateway service. We offer integration using the API or Payment Page plugin. Get to know more about our service by contacting us here.