36% of Gen Z Shoppers Use Digital Wallets as Checkout Habits Shift

That is one of the broader signals in “The New Checkout: Crimped Consumers Lean Into Online Retail and Digital Wallets,” a PYMNTS Intelligence report based on a survey of 2,108 U.S. consumers. The report found that financial stress is shaping where consumers shop, how much they spend per trip and which payment tools they use. Its larger message is that wallets, online carts and value-focused merchants are becoming part of the household budgeting toolkit, especially for younger consumers and families.

Many stressed consumers are still spending, but they appear to be shopping with more intent. High-stress consumers spent an average of $109 on their last grocery purchase and $111 on their last retail purchase. Low-stress consumers spent $95 and $88, respectively. That could reflect larger households, fewer shopping trips or a more planned approach to buying. In online retail, the gap was even wider, with high-stress consumers spending $169 on average, compared with $96 for low-stress consumers.

The data suggest three important considerations for banks, merchants and payments providers:

• 17% of consumers reported recent cash shortfalls. The report classifies these consumers as under high financial stress. The strain is more concentrated among younger shoppers and parents. One in four millennials, Gen Z consumers and parents with children under 18 reported cash shortfalls for living expenses or emergencies in the prior 90 days.
• 28% of high-stress consumers used digital wallets for their last retail purchase. That compares with 11% of low-stress consumers. The same pattern appeared in grocery, where 21% of high-stress consumers used wallets, compared with 8% of low-stress consumers. The report suggests that wallets may be gaining because they offer access to buy now, pay later options, spending visibility and bank-like features.
• 56% of high-stress online grocery shoppers bought from Walmart. That compares with 50% of low-stress online grocery shoppers. In stores, 37% of high-stress grocery shoppers made their most recent purchase at Walmart, compared with 26% of low-stress shoppers. The data point to a stronger pull toward value merchants as consumers try to make budgets work.

There is a positive reading for payments and commerce players. Consumers are not only looking for cheaper options. They are looking for more control. Digital wallets can put payment choice, short-term financing, transaction history and budgeting tools in one place. Online shopping can make prices easier to compare and promotions easier to find. Retailers with strong value messages can meet consumers where they are without asking them to give up convenience.

For merchants, the opportunity is to treat checkout as part of the shopping experience, not the final step after the decision is made. For banks and payment providers, the signal is just as clear. Wallets are becoming more than containers for cards. For many consumers, they are becoming a financial management tool that helps stretch each dollar while keeping purchases moving.