Gen Z Driving the Shift from Cards to Digital Wallets, New Research from Global Payments Suggests Mar 31, 2026 8:30 AM Eastern Daylight Time Gen Z Driving the Shift from Cards to Digital Wallets, New Research from Global Payments Suggests Share United States payment methods. ATLANTA--(BUSINESS WIRE)-- Global Payments(NYSE: GPN) announced today that its Worldpay® business released its 11th annual Global Payments Report, revealing that Americans remain attached to plastic – even as younger generations are swa ...

Industry Overview - Mobile payments are increasingly replacing physical wallets, reducing reliance on cash and traditional ATM networks, and enabling real-time transactions at lower costs [2][3] - The global mobile payments market reached $4.97 trillion in 2025 and is projected to grow to $46.62 trillion by 2034, reflecting a 28% compound annual growth rate [5] - The rise of super apps like WeChat Pay and Alipay is transforming consumer behavior by integrating messaging, shopping, banking, and payments into a single platform [4] Consumer Trends - Younger consumers, particularly Gen Z and Millennials, are driving the adoption of mobile payments due to their preference for faster and more seamless experiences [3] - The trend of agentic commerce is emerging, where AI may automate purchases and payments in the background, enhancing user convenience [3] Key Players - JPMorgan Chase is a significant player in mobile payments, allowing customers to use popular mobile wallets and facilitating person-to-person transfers through Zelle, which saw a 20% increase in total volume to $1.2 trillion last year [8][9] - Block, Inc. has established itself with its Cash App, which has 59 million active users and generated a gross profit of $6.3 billion in 2025, a 21% year-over-year increase [11] - Jack Henry & Associates provides the technology that enables banks and credit unions to offer mobile payment services, supporting real-time transfers and digital bill payments [14][16] - Remitly Global focuses on digital remittances, facilitating international money transfers through its app, with active customers growing to 9.3 million and total send volume reaching $20.8 billion, a 35% year-over-year increase [17][18] Competitive Landscape - As mobile payment adoption rises, competition intensifies among companies like JPMorgan Chase, Block, Jack Henry, and Remitly, which are expanding their services and partnerships [6] - Regulatory frameworks are evolving to enhance security, data privacy, and financial inclusion, with initiatives like FedNow in the U.S. and Europe's PSD2 supporting digital payment trust [6]

Industry Overview - The mobile payments market is experiencing rapid growth due to the shift from cash to digital transactions, driven by convenience and security [1][2] - Increased internet penetration and smartphone usage are contributing to the adoption of digital payments [2] - Industry players are diversifying contactless payment options, including mobile wallets, biometrics, and QR codes, to solidify their market presence and diversify income streams [3] Company Insights JPMorgan Chase & Co. (JPM) - JPMorgan Chase is benefiting from operational strength, with expectations of a 9% growth in net interest income (NII) by 2026, supported by business expansion and robust loan balances [7][10] - The bank's investment in technology initiatives is projected at $19.8 billion for 2026, although concerns about asset quality persist due to a challenging macro backdrop [11] - The expected revenue and earnings growth rates for JPM are 5.6% and 6.8%, respectively, for the current year [11] Intuit Inc. (INTU) - Intuit is well-positioned in the financial and tax management market, with a focus on cloud-based subscription models to generate stable revenues [13][14] - The company has an expected revenue growth rate of 12.4% and earnings growth rate of 14.8% for the current year [15] - The acquisition of Credit Karma has expanded Intuit's customer base and accelerated revenue growth [14] Jack Henry & Associates Inc. (JKHY) - Jack Henry is benefiting from growing services and processing revenues, with strong demand for its AI-powered fraud detection platform [17][18] - The expected revenue and earnings growth rates for Jack Henry are 5.9% and 6.1%, respectively, for the current year [18] - The company is experiencing strong momentum across its various segments, positively impacting top-line growth [17]

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Core Insights - Adaptability is identified as a key competitive advantage in the payments industry, emphasizing the need for companies to be flexible in response to rapid changes [1][5] Industry Trends - The pandemic accelerated the shift towards digital and contactless payment methods, making speed and convenience essential expectations for consumers [3] - Global digital wallet transaction value reached $10 trillion in 2024, a significant increase from $3.9 trillion in 2020, driven by the dominance of mobile payments and Gen Z adoption [7] - AI-driven tools for fraud prevention, such as tokenization and multi-factor authentication (MFA), have reduced eCommerce fraud by up to 30%, with real-time detection processing over a billion transactions daily [7] - Embedded payments are projected to hit $6.5 trillion in volume by 2025, while open banking adoption is growing, albeit slowly in the U.S. due to regulatory challenges [7] - Cash usage has declined sharply in mature markets, yet it remains resilient globally, indicating diverse consumer preferences for payment methods [7] Merchant Needs - Small and medium-sized businesses (SMBs) are increasingly seeking seamless financial management solutions, expecting immediate access to funds and a consolidated view of their performance [7] Payment Innovations - The anticipated rise of real-time payments has been validated, with UPI in India and Pix in Brazil leading the way, although the U.S. has not scaled as expected [7] - The rapid adoption of AI, particularly following the introduction of ChatGPT in November 2022, has shifted consumer behavior towards seeking advice from AI rather than traditional search engines [7]

Industry Overview - Mobile payments are increasingly replacing physical wallets, enhancing transaction speed and efficiency in the global economy [2][3] - The global mobile payments market reached $4.97 trillion in 2025 and is projected to grow to $46.62 trillion by 2034, reflecting a 28% compound annual growth rate [4] Technological Advancements - The rise of smartphone penetration, wearables, and fintech innovations are driving mobile payment adoption, particularly among Gen Z and Millennials [3] - Technologies such as AI and blockchain are improving fraud prevention and transaction reliability [3] Market Dynamics - E-commerce growth and improved digital infrastructure are reinforcing mobile payment momentum, benefiting small businesses by enhancing cash flow and financial visibility [5] - Competition is intensifying among companies like Nu Holdings, Global Payments, and Remitly, which are forming deeper partnerships to scale their operations [6] Company Insights: Nu Holdings - Nu Holdings offers mobile payment capabilities through its Nubank platform, integrating payments into a single app-based ecosystem [8] - The company serves over 127 million customers globally, with a strong engagement rate of over 83% [9] - Nu Holdings is strategically applying for a U.S. national bank charter to access a larger digital payments market [10] Company Insights: Global Payments - Global Payments is a leading provider of payment technology, enabling mobile and digital wallet transactions across various channels [11] - The company generates revenue primarily through transaction-based fees, benefiting from the rise in mobile payment adoption [13] Company Insights: Remitly Global - Remitly operates a mobile-first platform focused on international remittances, facilitating seamless cross-border payments [14] - The company reported 8.9 million active customers and a 35% year-over-year increase in total send volume to $19.5 billion [16] - Remitly is expanding its partnerships to enhance geographic coverage and accelerate settlement times [17]

Core Insights - The mobile payments landscape is rapidly evolving, driven by the adoption of smartphones and fintech innovations, leading to a decline in cash reliance and ATMs [2][3][4] - The global mobile payments market is projected to grow from $3.84 trillion in 2024 to $26.53 trillion by 2032, reflecting a 27% CAGR, indicating significant long-term potential [4] Industry Overview - Mobile payments are reshaping financial transactions globally, integrating digital wallets and technologies like NFC and QR codes to enhance consumer and business interactions [2][3] - The rise of super apps, such as WeChat Pay and Alipay, is changing consumer behavior by combining various services into unified platforms [3] - E-commerce growth and improved digital infrastructure are further propelling the mobile payments sector, benefiting small businesses through faster settlements and better cash flow visibility [4] Competitive Landscape - Competition is intensifying as companies like Nu Holdings, ACI Worldwide, and Bread Financial expand their services through partnerships with banks and merchants [5] - Regulatory frameworks are evolving to enhance security, data privacy, and financial inclusion, with initiatives like FedNow in the U.S. and UPI in India [5] Company Highlights - **Nu Holdings**: Offers mobile payment capabilities through its Nubank platform, serving over 127 million customers, with a strong presence in Latin America [9][10] - **ACI Worldwide**: Provides the infrastructure for mobile payments, enabling real-time transactions and supporting over 200 digital wallets across 70 countries [11][14] - **Bread Financial**: Focuses on embedded financing solutions, allowing merchants to integrate buy now, pay later options into mobile checkouts, enhancing consumer flexibility [15][18]

Core Insights - Visa has launched three new digital wallets in Europe in collaboration with BBVA, Klarna, and Vipps MobilePay, with a pilot project with BANCOMAT planned for early 2026 [2][3] - The new wallets utilize near field communication (NFC) technology for host card emulation (HCE) on iOS wallets, marking a significant advancement in mobile payment options [2][3] Industry Trends - The EU's Digital Markets Act has facilitated a major regulatory shift, allowing third-party wallets to access NFC technology, which is expected to enhance competition and innovation in mobile payments [3] - Mobile payments currently account for 59% of all eCommerce transactions in Europe, projected to rise to 75% by 2030, with 32% of Europeans relying solely on mobile wallets for purchases [3] Company Developments - BBVA Pay in Spain is the first wallet globally to integrate Visa's Token Service using Visa's software developer toolkit, enhancing security by replacing sensitive card information with a secure digital token [4] - Klarna is expanding its app into 14 new European markets, enabling tap-to-pay capabilities through its collaboration with Visa [4] - Vipps MobilePay has launched a Visa co-badged wallet in Norway, with plans to expand to Denmark, Finland, and Sweden [5]

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Core Insights - PayPal Holdings reported transaction revenues of $7.52 billion in Q3 2025, reflecting a year-over-year growth of 6.4% and accounting for approximately 89.4% of its net revenues [1][8] - The growth in transaction revenues is attributed to the rise in online shopping and mobile payments, contributing to solid financial results for the quarter [1] Transaction Revenue Details - Transaction revenues primarily derive from fees charged to merchants and consumers for payments processed through PayPal's platforms, based on the Total Payment Volume [2] - Transaction margin dollars (TM$) for Q3 2025 reached $3.87 billion, exceeding management's guidance range and representing a growth of 5.9% on a reported basis [3][8] - Excluding interest on customer balances, TM$ increased by 7.1% to $3.55 billion [3] Business Segments Contribution - TM$ growth is driven by various business segments, including branded experiences, Payment Service Providers (PSP), and Venmo, with a notable rebound in the enterprise payments business contributing to this growth [4][8] Competitor Performance - Block's transaction revenues for Q3 2025 were $1.87 billion, up 9.4% year-over-year, representing 30.6% of its net revenues [5] - Payoneer Global reported total revenues of $270.9 million for Q3 2025, a 9% year-over-year increase, with revenues excluding interest income growing by 15% [6] Valuation and Estimates - PayPal shares have declined by 21.3% year-to-date, underperforming the broader industry and the S&P 500 Index [7] - The stock is trading at a forward 12-month P/E of 11.44X, significantly lower than the industry average of 20.64X, indicating a cheap valuation [10] - The Zacks Consensus Estimate for full-year 2025 EPS has been revised upward, suggesting a year-over-year growth of 14.6% [11]