Imagine a future where you can pay for your coffee with Bitcoin or buy concert tickets using a digital wallet. Well, that future is closer than you think. That is to say, Cryptocurrency as far as Gen Z is concerned has a place in the future and it’s already taking over.

Idex Biometrics emphasized that by 2029, Millennials and Gen Z will make up 72% of the world’s workforce. According to another report, Gen Z entering the workplace in 2030 are expected to make up a quarter of the world’s income with $33 trillion at their disposal.

GOBankingRates’ Best Banks 2023 survey showed that more than a quarter of GenZ’s think of affiliating their bank with a cryptocurrency exchange.

As Gen Z steps into adulthood, we’re seeing a shift in how money flows and payments are made. Many experts according to research agreed that the future of crypto payments is very bright, and it’s something Gen Z needs to keep an eye on. Cryptocurrencies like Bitcoin and Ethereum aren't just for investment anymore, people are starting to use them for everyday purchases from a cup of coffee to booking flights, online transactions and so on.

TL;DR:

• Gen Z is poised to lead the future of payments, and crypto offers the transparency, speed, and decentralization that traditional banking lacks.

• With cryptocurrencies like Bitcoin and stablecoins, everyday transactions are becoming faster, cheaper, and more accessible to the younger generation.

• The article covers how major brands are adopting crypto, stablecoins are reducing volatility, and DeFi is giving people more financial control.

• These trends will shape how Gen Z handles money in the future, providing new opportunities for financial independence.

Want to learn more? Dive into expert predictions on how crypto payments will redefine the future.

 1. Crypto Will Be Integrated into Existing Payments

Crypto isn’t just for the crypto expert anymore. According to a report from Deloitte, "The Future of Cryptocurrency" predicts that by 2030, digital currencies could be used as widely as credit cards. This shift will be driven by big companies like PayPal, Visa, and Mastercard, which are already integrating crypto into their systems.

Anthony Pompliano. Source: Maven.

Alt: Picture of crypto investor - Anthony Pompliano. 

Expert Take: Anthony Pompliano, a renowned crypto investor, says, “It’s not a matter of if, but when crypto becomes a daily payment method. Companies are realizing that crypto offers faster, cheaper, and more secure transactions.”

For Gen Z, this means you may soon be paying for streaming subscriptions, online shopping or even your morning coffee with Bitcoin or stablecoins. How cool would that be?

2. More Brands Will Embrace Crypto for Shopping

We all love online shopping and with crypto, it’s about to get a lot easier and better. Big brands like Tesla, Microsoft, Apple Pay, and even Shopify are starting to accept Bitcoin and other cryptocurrencies as payment. This trend is only going to grow according to a survey by PwC’s Global Crypto Report which revealed that over 60% of businesses are considering accepting crypto payments in the next few years.

Tim Draper. Source: Observer.

Alt: Picture of billionaire crypto investor - Tim Draper. 

Expert Take: Tim Draper, a billionaire venture capitalist, predicts, “Within the next five years all major retailers will have some form of crypto payment option. It’s going to be as common as swiping a card.”

This means that whether you’re buying a new hoodie, a gaming console, or even groceries, crypto could be your go-to payment method.

3. Reduction of Excess Charges and Faster Transactions

We’ve all experienced the frustration of waiting for a payment to clear or seeing hidden fees on our bank statements. The good news is experts like Caitlin Long the founder of Avanti Financial believe that blockchain-based payments will significantly lower costs and speed up transactions. With crypto there's no middleman like banks or payment processors which makes it faster and cheaper.

Caitlin Long. Source: Reason Magazine.

Expert Take: Caitlin Long says, “Crypto payments can settle in minutes, even seconds, and the fees are fractions of what you pay for traditional banking services.” This could be a game-changer for Gen Z who values convenience and speed. Imagine transferring money to a friend overseas without waiting days or paying ridiculous charges or fees. With crypto that’s already happening and it’s only going to get better.

4. Stablecoins and Less Volatility

We’ve all seen the wild price swings of Bitcoin and while that can be exciting for investors, it’s not so fun when you’re trying to use it for payments. Stablecoins are a type of cryptocurrency whose value is tied to another asset class to keep a stable, steady value. The most popular kind of stablecoins is fiat-backed stablecoins which are tied to currencies such as the U.S. dollar. Stablecoins are already gaining traction as a reliable form of payment, and experts think they’ll play a big role in the future of crypto spending.

eremy Allaire. Source: The Business Magnate.

Alt: Picture of the CEO of Circle - Jeremy Allaire. 

Expert Take: Circle CEO Jeremy Allaire says, “Stablecoins will be the foundation of the future financial system, allowing people to send money instantly with zero volatility risk.”

For Gen Z, this means you can use crypto without worrying about its value dropping before you even finish your transaction. Stablecoins offer the stability of traditional currencies with the benefits of blockchain technology.

5. The Rise of DeFi and Financial Independence

Decentralized finance (DeFi) is another trend shaping the future of crypto payments. DeFi allows people to bypass traditional banks and manage their finances directly on the blockchain. According to a report by Chainalysis, the DeFi space grew by 912% in 2021, and it’s expected to continue its rapid growth.

Chris Dixon. Source: The Times.

Alt: Picture of entrepreneur and investor - Chris Dixon. 

Expert Take: Chris Dixon, a partner at a16z (Andreessen Horowitz), says, “DeFi puts power in the hands of the people. Gen Z will be the generation that doesn’t need banks to store or send money—they’ll be their banks.”

DeFi will allow you to control your finances through apps that let you make payments, earn interest, and even take out loans—all without a bank. This could redefine financial independence for Gen Z.

6. Banks Will Need to Incorporate Cryptocurrency into their services

The more GenZ and millennials diversify their retirement portfolios with cryptocurrency investments, the more necessary it will become for banks to pay attention. David Kemmerer, co-founder and CEO of CoinLedger said it will be important for banks to incorporate crypto into their services.

David Kemmerer. Source: Medium.

Alt: Picture of CEO CoinLedger - David Kemmerer. 

Expert Take: “Gen Z is looking to integrate crypto as part of their investment and retirement plans,” he said. “Millennials and Gen Z have started investing in cryptocurrencies outside their traditional asset classes. Banks should find a way to support cryptocurrencies as a strategy to capture millions of Gen Z customers.”

While most banks are not selling crypto directly, some already have begun to support customers who want access to digital currencies. Ally, USAA, and Chime are among the banks that serve as intermediaries to crypto exchanges.

7. The Next Crypto Iteration: A Hybrid of Web2 and Web3

What does this digital revolution look like within a banking institution? Marc Arbones, founder and editor at Altcoins Mastery said the next crypto iteration will be a hybrid of Web2 (aka social media) and Web3 (blockchain, etc.). More institutions will accept, and offer, cryptocurrencies to customers.

This is good news for millennials and GenZ, as well as digital currencies becoming more mainstream as alternative investments. Arbones said traditional banking institutions and Web2 are slowly embracing cryptocurrencies.

Marc Arbones. Source: Medium.

Alt: Picture of founder and editor at Altcoins Mastery - Marc Arbones. 

Expert Take: “I see a combination of Web2 and Web3 emerging,” Arbones said. “It will take some time to transition to a fully decentralized banking system.”

What’s Next for Gen Z and Crypto Payments?

The future of crypto payments is filled with opportunities. Whether it’s more retailers accepting crypto, faster transactions, or the rise of stablecoins and DeFi, experts believe we’re heading into a world where digital currencies will be as normal as cash or cards.

As Gen Z, we’re already tech-savvy and open to new ideas, so we’re in the perfect position to embrace this change. Whether you’re looking to spend your crypto or just keep up with the latest trends, now’s the time to get informed and get involved.

FAQs

1. What is the future of crypto payments?

The future of crypto payments looks promising with predictions indicating that cryptocurrencies will be integrated into existing payments by 2030. Big companies like Visa, PayPal, and Mastercard are already integrating crypto into their payment systems, and experts believe it will be as common as using credit cards shortly.

2. Will Gen Z benefit from using crypto for payments?

Yes, Gen Z is well-positioned to benefit from crypto payments due to their tech-savviness and openness to new financial technologies. Crypto offers faster transactions, lower fees, and greater financial independence through decentralized finance (DeFi).

3. What are stablecoins, and why are they important?

Stablecoins are cryptocurrencies tied to stable assets like the U.S. dollar which reduces volatility. They are very important for payments because they offer the benefits of blockchain technology without the risk of price fluctuations. Experts predict stablecoins will play a significant role in the future financial system.

4. Will more brands start accepting crypto payments?

Yes, many big brands like Tesla, Microsoft, and Shopify are already accepting crypto. Experts believe that within the next few years, most major retailers will offer crypto payment options to make it easier for Gen Z to use crypto for everyday transactions.

5. How will blockchain technology impact payment speed and fees?

Blockchain technology enables faster transactions with lower fees by eliminating intermediaries like banks and payment processors. Payments can be settled in seconds, and the fees are much lower compared to traditional banking services.

6. What is DeFi, and how does it change financial independence?

DeFi or decentralized finance permits users to manage their finances directly on the blockchain. Gen Z can use DeFi to make payments, earn interest, and even take out loans without needing a bank.

7. Are banks going to adopt cryptocurrency?

While most banks do not directly sell crypto, some are starting to support customers who want to invest in digital currencies. As Gen Z and millennials incorporate crypto into their portfolios, banks are expected to integrate crypto services to attract younger customers.

8. How can Gen Z prepare for the future of crypto payments?

Gen Z can prepare by staying informed, understanding the technology behind crypto, and exploring the various uses of digital currencies, such as investing, making payments, or participating in DeFi. Embracing crypto now will position them to take full advantage of the upcoming financial revolution.