Pay.UK recently carried out a ‘2026 Research’ study. The findings show that 72% of Generation Z favour everyday rewards over interest rates. Delayed life milestones account for this preference, leading to a higher demand for immediate lifestyle perks and digital-first banking. The study provides insights into this tech-savvy generation’s changing attitudes and preferences.
Generation Z, those born between the mid-1990s and early 2010s, are well-known for their tech affinity. Given their online-centric daily activities, their preference for digital-first banking solutions isn’t surprising. The study also discovered their attraction to offerings that yield instant rewards, like discounts or free items.
Preference for Immediate Lifestyle Perks
The study found that 72% of Gen Z respondents prioritise everyday rewards over interest rates. This shift from traditional banking incentives towards immediate, tangible benefits is evident. These benefits could range from a free coffee to a discount at a favourite online store.
Delayed life milestones are a major reason for this change in preference. Many Gen Z individuals postpone significant life events, like buying a house or starting a family, due to economic constraints. Consequently, they gravitate towards immediate lifestyle perks that offer instant gratification.
Pay.UK‘s research findings underscore a broader trend in the fintech sector. Numerous fintech companies have already started addressing these preferences by offering innovative, digital-first services. These services often include various lifestyle benefits designed to appeal to this younger demographic.
As the Gen Z population matures and expands, their influence on the banking and fintech sectors is likely to increase. Institutions that successfully cater to their unique preferences and demands could gain a competitive advantage in the rapidly evolving fintech landscape.
