Fintech Usage Trends Among Gen Z in 2024

In 2024, Generation Z (Gen Z) in Indonesia has increasingly embraced financial technology (fintech) solutions, integrating them into daily life for payments, savings, and loans. A survey by Jakpat reveals that e-wallets, paylater services, and online loans are the most utilized fintech platforms among Gen Z, reflecting a preference for practical, efficient, and flexible financial transactions.

1. E-Wallets: The Preferred Payment Method

E-wallets continue to dominate as the preferred digital payment method among Gen Z. The survey indicates that 94% of Gen Z individuals use e-wallets for both online and offline transactions. Features such as ease of use, cashback promotions, and zero administrative fees contribute to the popularity of e-wallets among young users. Beyond payments, e-wallets are utilized for money transfers (70%), online shopping (63%), and even saving funds (60%). Additionally, 92% of Gen Z use e-wallets for entertainment purposes, including concert tickets and streaming subscriptions.

2. Paylater Services: Flexible Transaction Options

Paylater services have gained traction among Gen Z, with 28% of respondents utilizing these services. The primary reasons include urgent needs (55%), daily shopping (32%), and bill payments (26%). The quick application process and flexible payment options make paylater services appealing to Gen Z, who often seek instant solutions. In entertainment, 31% of Gen Z use paylater services for larger expenses, such as concert tickets or new gadgets, indicating that paylater services are not only used for urgent needs but also for lifestyle choices.

3. Online Loans: Meeting Immediate Financial Needs

Online loans (pinjol) also hold a place among Gen Z, though with a smaller user base compared to e-wallets and paylater services. The survey notes that 10% of Gen Z respondents use online loans, primarily for urgent needs (62%), daily expenses (42%), and bill payments (35%). Online loans offer quick access to funds without complex processes. However, Gen Z tends to be cautious due to risks such as high interest rates and strict repayment terms.

Conclusion

The adoption of fintech among Gen Z in Indonesia is driven by the desire for convenience, flexibility, and efficiency in financial transactions. E-wallets, paylater services, and online loans have become integral to their financial activities, reflecting a shift towards digital financial solutions. As fintech continues to evolve, it is essential for Gen Z to enhance financial literacy to navigate these services responsibly and sustainably.