Merchants are facing a growing issue of purchase abandonment by Generation Z due to the lack of digital wallet support. According to the PYMNTS Intelligence report "The Hidden Cost of Checkout Gaps," prepared in September 2026 in collaboration with PayPal, 28% of Gen Z shoppers either abandoned or would have abandoned an online purchase in the previous month because digital wallets were not accepted. This figure is more than double the rate for shoppers overall (13.7%). In comparison, the rate for millennials is 18%, for Generation X it is 10%, and for baby boomers and seniors, it is 3.9%.
The use of digital wallets is already widespread: 47% of Gen Z shoppers and 44% of millennials used a digital wallet for online purchases in the previous month. Nearly half of Gen Z consumers who made their last retail purchase using a digital wallet would switch merchants or abandon the purchase if the wallet was not available. The share of such consumers is 48%. For Generation X users, this figure is lower—ranging from 25% to 27% depending on the transaction category.
Broader data shows that the issue is not limited to a narrow group. About 87 million consumers, or one-third of American shoppers, used at least one digital wallet online in the past 30 days. Another 77 million, or 29%, used it in-store. Over the month, 36 million American shoppers either abandoned or would have abandoned a purchase because their preferred wallet was not accepted. This group includes those who actually abandoned the purchase, wallet users who completed the purchase but stated they would have left if the wallet was not available, as well as consumers from both categories.
For merchants, the generational difference changes the approach to payment acceptance. Adding another wallet might seem like a checkout-level solution if evaluated solely by payment volume. But the calculation changes if the lack of support leads a potential customer to switch to another merchant after the seller has already incurred acquisition costs. A checkout that does not meet the needs of young shoppers reduces the return on efforts and costs to attract these clients. For merchants competing for a young audience, payment options at checkout become part of the acquisition and retention strategy.
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