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 ...

Core Insights - CPI Card Group's stock increased by 41.4%, surpassing a $200 million market capitalization for the first time this year, despite mixed fiscal Q4 2025 results [1] - Analysts had expected earnings of $0.69 per share on sales of $145.2 million, but actual earnings were $0.62 per share, while sales exceeded expectations at $153 million [1][3] Financial Performance - CPI's sales grew by 22% year over year, driven by a 40% increase in debit and credit card sales, although this was partially offset by a 27% decline in the prepaid debit card segment [3] - Gross profit margins decreased by 260 basis points to 31.5%, while net income rose by 9% [3] - For the full year, CPI reported a 13% increase in sales, a gross profit margin of 31.3% (down 430 basis points from 2024), and a 23% decline in net income [3] - Free cash flow was significantly higher than net income at $41.3 million, reflecting a 21% year-over-year increase [3] Valuation and Market Position - CPI's stock is valued at $200 million, trading at a 5x price-to-free cash flow ratio, which appears inexpensive [4] - The company has $265 million in net debt, which more than doubles its enterprise value [4] - Management forecasts "high single-digit" sales growth for the upcoming year, which could support continued free cash flow growth in the low double-digits [4]

Company Overview - Klarna Group (NYSE:KLAR) is a digital bank and flexible payments provider that recently closed at $13.84, experiencing a significant drop of 26.95% after Q4 results missed forecasts and guidance indicated slower near-term growth with increased credit provisions [1][3] Financial Performance - Klarna reported a revenue growth of 38%, an increase in merchants by 42%, and a rise in active users by 28% during the quarter, but these figures fell short of market estimates [3] - The company's provision for credit losses surged by 59% compared to the previous year, contributing to the stock's decline [4] Market Reaction - Trading volume for Klarna reached 44.6 million shares, which is approximately 1,159% higher than its three-month average of 3.5 million shares, indicating heightened investor activity [1] - The S&P 500 and Nasdaq Composite also experienced slight declines of 0.29% and 0.31%, respectively, reflecting broader market trends [2] Competitive Landscape - Industry peer Affirm closed at $51.82, up 0.23%, highlighting differing market reactions to funding and growth narratives within the sector [2] - Klarna's banking operations, which launched debit cards and bank accounts in the U.S. last year, doubled its active consumer count to 15.8 million, suggesting potential for future growth despite current challenges [4] Valuation - Klarna is now trading at a valuation of 1.6 times sales, which is considered more reasonable compared to its previous valuation, making it a company to watch for risk-tolerant investors [4]

Core Insights - The generational divide in payment methods highlights differing attitudes towards cash, with younger generations viewing it as outdated while older generations see its benefits [1][2][3] Group 1: Generational Perspectives on Cash - Nearly one-third of Gen Z respondents consider cash payments to be "out of touch" or "cringe," contrasting with the views of baby boomers and Gen X who appreciate the advantages of cash [1] - About 55% of Gen Z and a similar percentage of millennials feel they are "more likely to spend without thinking" when using cash, while only 33% of Gen X and 21% of baby boomers share this sentiment [2] Group 2: Psychological and Behavioral Factors - Older generations perceive cash as more tangible and real, while younger generations, having grown up with digital banking, do not share this same perception [3] - The difference in cash perception may stem from how money management was learned, with older individuals having more experience with physical currency [3] Group 3: Cash Usage and Financial Behavior - Lower-income consumers and adults aged 55 and older tend to rely more on cash, but this does not correlate with debt or savings [4][5] - The reliance on cash among lower-income individuals may be due to limited access to credit or financial caution rather than an inherent ability of cash to prevent debt [5]

Core Insights - A recent PwC survey indicates that debit cards are the most preferred payment method for holiday spending at 55%, followed closely by credit cards at 52% and cash at 48% [1] Payment Methods - **Debit Cards**: Most favored payment method among consumers, with 55% preference [1] - **Credit Cards**: Preferred by 52% of respondents; experts advise using them only if the balance can be paid off in full to avoid overspending [5][6] - **Cash**: Chosen by 48% of shoppers; while traditional, it may not offer the same consumer protections as cards [1] - **Gift Cards/Prepaid Cards**: Preferred by 27%; they can help curb spending but may lose value over time due to fees [4] - **PayPal**: Also preferred by 27%; offers convenience for online transactions [1] - **Loyalty Points/Rewards**: Least preferred at 17%; can provide additional value but are not a primary payment method [1] Expert Recommendations - **Gift Cards**: Offer security and consumer protection but can expire or incur fees; tracking balances is recommended [4] - **Credit Card Usage**: Consumers should track spending to avoid exceeding budgets; credit cards provide expanded liability coverage and rewards [5][6]

Group 1 - Visa Inc. has shown significant growth over the past decade, with a compound annual earnings growth of 16% [1] - The company has a current market capitalization of nearly $700 billion and is expected to achieve a 14% growth this year [1] - Despite concerns about new payment platforms, they have not significantly impacted the major credit card networks like Visa [1] Group 2 - Visa is recognized as a payment technology company that processes digital transactions and offers various types of cards [2] - There is a belief that certain AI stocks may present greater upside potential and lower downside risk compared to Visa [2]

Core Insights - Banks and shadow banks are launching various offers to boost credit demand during the festive season, which has been relatively muted this year [2] - Lenders are reducing interest rates on loans for homes, vehicles, and personal use, while waiving processing fees and extending repayment tenures [2] Group 1: Offers and Discounts - Many banks have partnered with retailers and e-commerce companies to provide 'instant' EMI options, cashback deals, and discounts on purchases [3] - ICICI Bank is offering savings of up to ₹50,000 on transactions made through credit or debit cards, internet banking, and cardless EMI [4] - HDFC Bank is providing 'festive treats' with savings of up to ₹50,000 on various loans, including personal, business, and vehicle loans [5] - Axis Bank has launched 'Dil Se Open Celebrations' to offer discounts, cashback, and exclusive deals for upcoming festivals [6] Group 2: Specific Offers by Banks - State Bank of India is providing a 10% instant discount on credit card purchases made during Amazon's 'Great Indian Festival' sale [7] - Non-banking financial companies (NBFCs) are focusing on two-wheeler loans following a GST cut, targeting demand in Tier-II and Tier-III cities [8] - Shriram Finance plans to introduce schemes for gold, housing, and vehicle loans to capitalize on festival demand [9] - L&T Finance has announced three festival schemes for two-wheeler customers, including no-cost EMI and prompt payment rebates [10] Group 3: Market Trends - There is a noticeable increase in demand within the auto ecosystem, particularly for two-wheelers, three-wheelers, and passenger vehicles [9] - The overall sentiment indicates a steady underlying demand for credit, with expectations of increased borrowing across key segments due to GST rationalization [8]

Group 1: IPO Overview - The capital markets regulator SEBI has approved six initial public offerings (IPOs) that will collectively raise approximately ₹12,500 crore [1] - Canara Robeco Asset Management Company will conduct a complete offer for sale of 4.98 crore equity shares, with Canara Bank diluting 2.59 crore shares and ORIX Corporation Europe NV offering 2.39 crore shares [1] Group 2: Fund Profiles - Canara Robeco manages 25 schemes, including 12 equity schemes, 10 debt schemes, and three hybrid schemes, with a quarterly average AUM of ₹1,083.66 billion as of December-end [2] - Hero Motors plans to raise ₹1,200 crore through its IPO, consisting of fresh issuance of shares worth ₹800 crore and an offer-for-sale of shares worth up to ₹400 crore by promoters [2] - Manipal Payment and Identity Solutions has confidentially filed a Draft Red Herring Prospectus (DRHP) for an IPO that includes both an offer-for-sale and fresh share issuance [3] Group 3: Capital Use and Company Focus - A significant portion of the capital raised by Manipal Payment and Identity Solutions will be utilized to reduce debt at the promoter entity level [4] - Pine Labs aims to raise ₹2,600 crore through the issuance of new shares, while existing shareholders will sell 14.78 crore equity shares via offer-for-sale [5] - Orkla India will conduct an IPO comprising an offer for sale of 2.28 crore equity shares by promoters and other shareholders [6] - Emmvee Photovoltaic Power plans to raise ₹3,000 crore, with promoters selling shares worth ₹856 crore and the company issuing fresh shares worth ₹2,144 crore [6]

Group 1: UnitedHealth Group - UnitedHealth Group experienced a significant stock price drop of over 22% following a weak first-quarter report, marking its worst single-session decline since August 1998 [1] - The company was previously the largest component in the Dow Jones Industrial Average, but this position has now been taken over by Goldman Sachs [1][2] Group 2: Market Overview - Major indices including the Dow, S&P 500, and Nasdaq Composite are currently in correction territory, defined as a decline of at least 10% from recent highs [2] - Despite the downturn, there are potentially better dividend stocks in the Dow, such as Visa, Chevron, and Procter & Gamble, that investors may consider [2] Group 3: Visa - Visa operates a payment processing model that generates fees from credit and debit card transactions, maintaining partnerships with financial institutions [3] - The company boasts an impressive operating margin of 66.2% and a profit margin of 54.3%, indicating strong profitability [4] - Visa's business model allows it to remain profitable even during economic slowdowns, with a current dividend yield of 0.7% due to a focus on stock buybacks [5] - Visa is considered a safe investment option, especially in a declining stock market [6] Group 4: Chevron - Chevron offers a dividend yield of 5%, making it the second-highest yielding component in the Dow, with a history of 38 consecutive years of payout increases [7] - The company has faced a sell-off in 2025 due to falling oil and natural gas prices, influenced by macroeconomic concerns [8] - Key investment factors for Chevron include its reliable dividend, strong balance sheet with low debt, and improvements in operational efficiency [9] - The stock has declined by 16% over the last month, presenting a potential buying opportunity for income-focused investors [10] Group 5: Procter & Gamble - Procter & Gamble has shown resilience during market downturns, as consumer staples tend to maintain steady demand [11] - The company has significant international exposure, which makes it vulnerable to tariffs and currency fluctuations, but it has historically managed to pass on costs to consumers [12] - Procter & Gamble is set to report its fiscal 2025 third-quarter earnings soon, with investors keen on management's insights regarding tariffs and trade issues [13] - With 69 consecutive years of dividend increases and a yield of 2.5%, Procter & Gamble is viewed as a safe investment, although its valuation is considered high at 27.2 times earnings [14]