35% of hotels still aren’t ready for digital wallets, data reveals

Despite 79% of Gen Z travellers using them

Real-time transactions are set to account for 27% of all global payments by 2028, new research from TerraPay, a global payments infrastructure company, has found. 

Gen Z are leading the charge when it comes to using this method of payment as the data revealed that 79% of this generation are using it.

Koert Grasveld, VP of payments at TerraPay, said: “With 79% of Gen Z using digital wallets, they are truly the instant generation; driving travel towards a mobile-first, real-time experience. 

"With an estimated attention span of just eight seconds, Gen Z expects payments to be as fast and effortless as scrolling through their phones. 

He added: "Digital wallets perfectly meet these demands, enabling real-time payments that deliver lower costs, broader access, increased inclusion, and new business models.”

Social media is also playing a part in this shift for Gen Z, for not only inspiration but also for travel choices as 40% of Gen Z travellers have booked a holiday directly due to TikTok content, while 49% of Gen Z use Instagram for travel inspiration.

Despite 80-90% now booking via mobile devices and often relying on integrated wallet solutions — a significant part of the travel industry remains slow to embrace real-time payments.

“Small property owners often struggle with managing international payments due to limited access to advanced digital tools and the high costs associated with traditional banking systems.

“These challenges include slow transaction times, high fees, and complex processes that hinder cash flow and create barriers to competing effectively on a global scale," added Grasveld. 

"For many small-scale operators - especially those managing just one or a few properties—these inefficiencies can significantly impact their ability to capture and serve international guests smoothly."

Digital wallets are leading the charge, and Gen Z is setting the pace.