Budget Pressure Is Changing What ‘Worth It’ Means to Gen Z

Financial stress is pushing more consumers toward digital wallets, and the shift may say less about tech adoption than about how shoppers are trying to stay organized when every dollar matters.

That is one of the clearest takeaways from “The New Checkout: Crimped Consumers Lean Into Online Retail and Digital Wallets,” a recent PYMNTS Intelligence report based on a survey of 2,108 U.S. adults conducted from Nov. 14 to Dec. 8.

The report looks at how financial pressure is changing grocery and retail behavior. Its broad finding is that strain at home is influencing where consumers shop, how much they spend per trip and which payment tools they reach for at checkout.

28% of consumers under high financial stress used a digital wallet for their most recent retail purchase, compared with 11% of low-stress consumers.

21% of high-stress consumers used a digital wallet for their last grocery purchase, versus 8% of low-stress shoppers.

36% of Generation Z consumers used digital wallets for their last retail purchase in November, up from 15% in March 2024.

The wallet story is especially notable because it points to a more practical role for these tools. For many consumers, digital wallets appear to be gaining traction not just because they are fast, but because they can bundle spending visibility, installment options and easier budgeting into a single checkout experience. For shoppers under pressure, that matters.

The report also suggests that stressed consumers are not simply pulling back. In some cases, they are spending more per transaction. Consumers under high financial stress spent an average of $111 on their last retail purchase and $109 on their last grocery purchase. Low-stress consumers spent $88 and $95, respectively.

That may reflect bigger, more planned purchases and fewer shopping trips. It may also show that consumers are using digital channels to consolidate spending, hunt for promotions and limit extra costs such as shipping or impulse buying.

There is also a clear merchant angle. Walmart appears to be benefiting from the search for value. Among online grocery shoppers under high financial stress, 56% made their most recent purchase from Walmart, compared with 50% of low-stress shoppers.

In stores, 37% of high-stress grocery shoppers bought most recently from Walmart, versus 26% of low-stress consumers. The report also found that stressed online retail shoppers were far less likely to buy from Amazon and much more likely to buy from Target. That suggests consumers are actively comparing where value feels most visible.

Other findings reinforce the same theme. High financial stress is concentrated among younger consumers and parents, with one in four millennials, Gen Z consumers and parents reporting recent cash shortfalls.

Yet the report points to adaptation as much as strain. Consumers are changing channels, choosing merchants more carefully and using payment tools that offer more day-to-day control. That creates openings for retailers, wallet providers and payment players that can make budgeting, flexibility and value easier to see at checkout. Clear value wins.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.