Young shoppers are rapidly rethinking what they want out of their checkout experiences. A growing number are open to using account-based, mobile-first payment tools, especially payment solutions that are convenient, fast, secure and offer value, according to a new generational payment habits analysis from Interac that looked at the payment attitudes of millennials and Gen Z.1
Retailers have every reason to take note of these changes or face the consequences: Eight out of ten (81 per cent) of Gen Z say they would walk away from brands due to poor payment experiences, according to a 2025 Gen Z payment study from Billtrust.2
Conversely, retailers that master the shifting payment preferences of Gen Z and millennials have the potential to reduce cart abandonment, improve customer loyalty and ultimately boost profits.
Here’s what you need to know to stay ahead of the competition.
1. Gen Z and millennials want to use direct payments at checkout
Account-to-account payments — involving transfers of funds directly from one bank account to another — are a growing phenomenon worldwide,3,4 and there are indications that Canadian millennials and Gen Z could adopt them in search of fast and secure ways to pay and move money.
They’ve grown highly comfortable with account-to-account payments when exchanging money among their peers: Seventy-three per cent of millennials and Gen Z are already using the Interac e-Transfer service at least once a month for P2P payments, according to the 2026 Interac generational payments analysis.
Now younger Canadians appear to be ready to settle with merchants directly from their accounts. In the Interac generational payment habits analysis, nearly one third (32 per cent) of Gen Z indicated that they would be open to using Konek — a new payment solution built in Canada — compared with 26 per cent of millennials and 20 per cent of the general population.
In addition to online transactions, young consumers are interested in using account-to-account payments for in-person and marketplace transactions, Interac found in a separate survey of Gen Z and millennials who have sent an Interac e-Transfer over the past six months.5
It’s easy to see why millennials and Gen Z are open to account-based payment tools. Younger generations are increasingly prioritizing financial control, convenience and choice, with 58 per cent of 18-35-year-olds polled including financial management in their overall wellness practices.
Ready to accept payments with Konek?
Talk to a specialist2. Seamless security at checkout is non-negotiable
As digital natives, young consumers are aware of security risks and weigh data protection heavily when choosing financial services.
More than half of millennials and Gen Z named security a top consideration when choosing where to bank, according to research from Apiture and The Harris Poll.6
These demands extend to payment options. Gen Z and millennials want their data protected, their privacy preserved, and authentication to be fast and simple. In fact, low-friction data protection is one of the highest-ranking features young consumers look for in account-to-account payment solutions.
3. Gen Z and millennials want frictionless, value-added payment experiences
Gen Z and millennials are demanding checkout experiences that are quick and easy — and at the same time are highly rewarding. According to the Interac survey of Gen Z and millennials who’ve sent an Interac e-Transfer in the last six months, they’ve reported reacting most favorably to features that make paying feel faster, simpler and more private.7
Speeding up checkout is critical. Long checkouts can lead to cart abandonment. The Baymard Institude found that 18 per cent of U.S. adult shoppers walked away from online transactions because the process was too long and/or complicated.8
Younger consumers are especially likely to demand convenient checkout experiences. Confident in their digital knowledge, eight out of ten (81 per cent) consider technology to be something that makes their lives easier, not more complex, versus 74 per cent of the general population, according to the Gen Z and millennials’ payment habits analysis by Interac.
It’s not surprising, then, that young consumers are more open to alternative payment methods that offer faster, more streamlined experiences than traditional modes of payment: Thirty-eight per cent of Gen Z and millennials say they would use account-based payments, versus 28 per cent of the general population, according to the Interac generational payment habits analysis.
Younger shoppers are likewise looking for value-added features at checkout, such as integrated merchant offers, incentives and loyalty programs. Nearly half (47 per cent) of Gen Z and millennials surveyed consider these features powerful motivators when choosing a payment method, compared with 39 per cent of the general population.
How Konek can deliver on Gen Z and millennials’ changing payment demands
Gen Z and millennials are defining a new era of retail payments. They want secure payment tools that help them gain more control over their finances, streamline the checkout process, and offer features that provide added value.
Developed by Interac and powered by Canada’s leading financial institutions, Konek is Canada’s new way to pay online.
With Konek, merchants can offer customers:
1
More ways to pay:
Konek supports chequing, savings, lines of credit and credit or debit cards affiliated with a participating financial institution empowering shoppers to choose the payment method that best fits their financial goals and their lifestyles.
2
Simple and fast checkout:
Once registered for Konek, users can check out in as little as one click, reducing friction points and potential for cart abandonment.
3
A secure experience:
Konek keeps customer data safe by using their financial intuitions’ secure authentication and payment consent protocols. For merchants, that means reduced fraud rates and chargebacks compared to certain other payment methods.
Retailers that fail to meet Gen Z and millennial’s changing demands risk alienating a critical audience and ultimately losing market share to more nimble competitors.
For retailers ready to embrace the future, adopting the right payment solution is paramount. By offering account-based payment options that prioritize these demands, merchants have the opportunity to transform their checkout experience into a powerful competitive advantage.
This article offers general information only and is not intended as financial, legal or other professional advice. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subject matter discussed. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Interac Corp.
