"Outdated and Spendthrift"... Generation Z Avoids 'This' in Favor of Phones Over Wallets [World is Z Gold]

Generation Z: "Cash Payments Are Inefficient"
More Difficulty Controlling Spending When Using Cash
Cashless Trend Spreading in Korea as Well

Editor's NoteGeneration Z (those born from the late 1990s to the early 2010s) is attracting attention as a generation that leads culture and trends in a rapidly changing era, setting new standards across society. In [World is Z Gold], we shed light on the lives and values of Generation Z around the world, examining how they are transforming society.

An aversion to cash is becoming increasingly evident among Generation Z in the United States. Unlike older generations in the U.S., who still tend to use cash more frequently, younger people who grew up in a digital environment have made smartphone-based easy payment systems a part of daily life. More and more members of Generation Z perceive cash as an inefficient and inconvenient means of payment. It is expected that, in the future, not only in the United States but also in most countries, the main payment methods will shift from cash to cards and mobile payments.

"Generation Z Abandons Cash in Favor of Cards"

The aversion to cash is becoming increasingly evident among Generation Z in the United States. Photo is unrelated to specific expressions in the article. Pixabay

Recently, the U.S. business media outlet CNBC reported on the declining preference for cash, stating, "It was only a few years ago that card payments surpassed cash usage," and "Generation Z is leading the trend of abandoning cash in favor of cards."

According to a survey conducted by the market research firm Harris Poll on behalf of the payment application Cash App, which targeted 2,080 American adults, more than half (53%) of Generation Z respondents said they use cash as a 'last resort' when making payments. Additionally, about one-third (29%) of Generation Z respondents described people who pay with cash as 'outdated or old-fashioned.'

Furthermore, Generation Z tends to perceive it as more difficult to control their spending when using cash. In fact, 54% of Generation Z respondents said they are more likely to spend thoughtlessly when carrying cash compared to when using credit or debit cards. This figure is significantly higher than that of Generation X (33%) and Baby Boomers (21%).

Lindsay Bryan Podvin, a financial counselor at Cash App, said, "There is a clear generational difference in perceptions of cash." She explained, "Older generations view cash as 'money you can physically hold,' but Generation Z and Millennials often do not experience the same sensation." Since they have grown up in an environment where they can check their balances and make payments in real time via smartphone, cash can feel like an 'inefficient and cumbersome method' to Generation Z.

This perception is also evident in online communities. One user wrote on the online community Reddit, "I no longer carry a wallet, and I keep my ID in my phone case. I make all my payments with Apple Pay," adding, "The process of withdrawing cash itself is unpleasant and inconvenient."

In Korea, Cash Usage Drops to 10% Range

Photo by Pixabay

The trend of avoiding cash is also appearing in other countries. In China, mobile easy payment services such as Alipay and WeChat Pay have already become the main payment methods, replacing cash or physical cards. In Sweden, which is considered a leading example of a cashless society, even church donations and purchases of magazines sold by homeless people can be made by card.

In Korea, 'cashless stores' are also spreading. Starbucks introduced a system in 2018 that does not accept cash payments at some locations. This aligns with the ongoing decline in the share of cash usage in Korea. According to the Bank of Korea's "2024 Survey on Payment Methods and Mobile Financial Service Usage," which surveyed over 3,500 adults aged 19 and older nationwide, the share of cash usage among all payment methods (based on the number of transactions) was 15.9% last year. The cash share dropped from 41.3% in 2013 to 36.0% in 2015 and 36.1% in 2017, falling into the 30% range, and then to 26.4% in 2019 and 21.6% in 2021, dropping below 20%. About ten years ago, 4 out of 10 payments were made in cash; now, that figure has decreased to just 1 or 2 out of 10.

Meanwhile, the speed and patterns of going cashless vary by country. Japan (41%), Spain (38%), Germany (36%), and Italy (25%) still show a high dependence on cash, while Nordic countries such as Norway (4%), Sweden (5%), and Finland (7%), as well as Commonwealth countries like New Zealand (6%), Canada (6%), and Australia (7%), stand out for their minimal use of cash.