From BNPL to Biometrics: How Gen Z pays for travel in 2025

By Gloria Methri

The way we pay for travel is undergoing a radical transformation, and Gen Z is leading the charge. Unlike previous generations, they are ditching traditional banking in favour of instant, digital-first solutions that prioritise convenience, flexibility, and security.

A new report by PXP, Generational Trends 2025: Gen Z and the Future of Payments, highlights just how much this tech-savvy generation is reshaping global travel payments.

The Digital-First Travel Wallet

According to the PXP report, 57% of Gen Z travellers consider multi-currency wallets essential for smooth international payments. With mobile-first spending habits, they expect frictionless access to funds without the hassle of currency exchange or excessive fees. For merchants and payment providers, this signals a shift towards integrated, borderless solutions that cater to the needs of a hyper-connected generation.

The Rise of BNPL for Travel

Buy Now, Pay Later (BNPL) is no longer just for fashion or gadgets—Gen Z is using it to finance their travel experiences. The report highlights a growing trend where young travellers spread the cost of flights, accommodation, and experiences over time. With BNPL offering interest-free instalments, it provides a flexible alternative to credit cards, making aspirational trips more accessible without accumulating debt.

Biometrics and Wearable Payments

From smartwatches to facial recognition, Gen Z is driving the adoption of biometric and wearable payments. The PXP survey found that 33% of respondents are interested in fingerprint or facial recognition payments, while 41% are open to using smartwatches or fitness trackers for transactions. For the travel industry, this means airports, hotels, and retailers need to integrate contactless, biometric payment methods to keep up with evolving preferences.

Ta-ta Traditional Banking?

While debit cards remain a staple for 34% of Gen Z, reliance on traditional banking is fading in favour of mobile wallets and alternative payment methods. Digital-native consumers seek real-time spending insights, low-cost international transfers, and enhanced security—something traditional banks often struggle to offer at scale.

For businesses in the travel sector, adapting to these payment preferences is no longer optional—it’s critical for capturing the next generation of customers. From embedding BNPL options at checkout to ensuring seamless multi-currency wallet integrations, merchants that prioritise frictionless digital payments will gain a competitive edge. As Gen Z continues to redefine the financial landscape, the travel industry must evolve to meet their expectations.