Gen Z abandons cash, reshaping how guests pay

Mobile-first payments change expectations for checkout, trust, and spending in hospitality

Gen Z is rapidly moving away from cash and physical wallets, relying instead on mobile phones and digital wallets for everyday spending. For hotels, this shift is not just about payment methods but about changing guest expectations around speed, convenience, and transparency at every touchpoint. Younger travelers perceive digital payments as safer and more intuitive, while cash increasingly feels irrelevant or even inconvenient. At the same time, new payment behaviors introduce operational risks and revenue considerations that hoteliers cannot ignore.

Key takeaways

• Mobile payments are now a baseline expectation: Gen Z guests are significantly more likely to pay with phones than older generations, making contactless and digital wallet acceptance essential at front desks, bars, spas, and outlets.
• Cash is no longer “real money” for younger guests: Many younger travelers view cash as disposable or incidental, while digital balances feel more controlled and intentional, influencing how and where they spend on property.
• Pandemic-driven habits are permanent: Contactless check-in, tap-to-pay, and mobile-first journeys normalized during COVID and are now expected as standard hospitality infrastructure.
• Debit and BNPL over traditional credit cards: Gen Z often prefers debit cards and buy now, pay later options for managing spending, signaling opportunities—and risks—for installment-based offers or pre-paid experiences.
• Frictionless payments increase ancillary spend: Easier payments can lift conversion on upgrades, dining, and add-ons, but may also lead to post-stay regret if guests lose track of cumulative charges.
• Operational resilience still matters: Fully cashless environments can fail during outages, system disruptions, or in certain travel contexts, requiring fallback payment options and clear guest communication.
• Trust shifts from physical to digital: Younger guests increasingly trust secure digital wallets more than carrying cash or cards, reinforcing the need for visible security, reliability, and payment flexibility across the guest journey.

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