The retail landscape has entered a pivotal era where seamless, flexible checkout experiences aren’t just appreciated by customers; they’re expected. As digital behaviors accelerate and competition intensifies, merchants must rethink how they engage consumers at the most critical moment of the shopping journey: the checkout.
Recent findings from Cash App Afterpay’s Why Credit Cards Give Gen Z the Ick report uncovers a generational shift that’s far more than a quiet transition. Today’s young consumers are actively rejecting traditional credit, not simply due to cost, but because it fundamentally doesn’t serve their needs in today’s economic reality. According to the research, more than half (63%) of Gen Z has already ditched credit cards in favor of other payment methods, such as debit and Buy Now, Pay Later (BNPL), signaling that the rules of retail engagement are changing.
Gen Z wants control and clarity — and a checkout that reflects both
This shift isn’t happening in a vacuum. Gen Z is entering adulthood under pressure, and inflation, rising living costs and economic instability are shaping their habits. They’re cautious, financially conscious and digitally fluent. And they’re deeply aware of how financial tools affect not just their wallets, but their mental well-being. Over half of Gen Z say credit cards give them the “ick”, a term that reflects both distaste and discomfort.
Why? Because credit cards feel unpredictable. More than 50% of Gen Zers are surprised by how much interest they pay, and 57% don’t fully understand credit card terms. In contrast, debit cards and BNPL tools offer the structure, simplicity and visibility they crave. Debit is now Gen Z’s #1 preferred payment method, with 75% swiping at least once per week. And 90% of Afterpay customers connect a debit card to manage installment payments; a sign that for this generation, real-time money management isn’t just a feature, it’s a necessity.
The rise of BNPL and the opportunity for retailers
BNPL is quickly becoming a cornerstone of that experience. For Gen Z, it provides what credit cards lack: clarity, boundaries and control. Afterpay’s Pay-in-4* model has no interest and no fees when paid on time, and includes guardrails like spending limits and account pauses to help users stay on track.
It’s not surprising, then, that 52% of Gen Z say BNPL helps them better manage their finances, and 38% use it weekly or more, significantly higher than any other generation. In their eyes, BNPL isn’t just a payment method, but a money management tool.
And for retailers, it’s quickly becoming a conversion driver. Nearly half of Gen Z say they’ll abandon a purchase if their preferred payment method isn’t accepted. These consumers want flexibility and expect brands to meet them on their terms, not the other way around.
A seamless checkout experience is a growth imperative
That’s why Cash App Afterpay matters. It’s not just a rebrand. It’s the opportunity for retailers who have already enabled Afterpay at checkout to reach Cash App’s 55M+ monthly active users through a single checkout flow.
For merchants, this convergence means:
- Reach more highly-engaged customers: Cash App continues to rank as the number one personal finance app in the U.S., with a majority of its users being Millennials and Gen Z
- Capture more spend: Empower Cash App customers with more spending power through Afterpay, while protecting them from overspending with built in consumer safeguards
- Strengthen brand saliency: Merchants can unlock the total value of the Cash App brand and ecosystem with minimal effort on their part
- Unlock lifetime value: Foster deeper customer loyalty by aligning with the values and tools younger consumers already use
The new standard: Seamless, omnichannel and emotionally aware
The digital path to purchase is increasingly fragmented across brand websites, mobile apps, social platforms and marketplaces. Simply showing up on these channels, and “checking the box” isn’t enough anymore. Retailers must deliver seamless, mobile-first experiences that offer the flexibility Gen Z demands of debit, BNPL and peer-to-peer payment methods.
Equally important is personalization. Exclusive deals, real-time rewards and payment transparency can build trust, while outdated, clunky checkout processes erode it.
As economic pressures persist and consumer expectations evolve, the checkout experience will remain a signal of how well a brand understands and serves its audience. Retailers that prioritize innovation at this critical touchpoint will lead with competitive advantage. Ultimately, brands that succeed in this new era will be those who remove friction, embrace transparency and align with the emotional and financial needs of their next generation of customers.
*Late fees may apply. Eligibility criteria apply. See www.afterpay.com and https://cash.app/ for more details. Loans to California residents made or arranged pursuant to a California Finance Lenders Law license. © 2025 Afterpay US
