Gen Zs paving new pathways to financial independence – survey

January 28, 2025 | 12:00am

MANILA, Philippines — Young professional Gen Zs are redefining the pursuit of financial independence with a unique blend of practicality, adaptability, and digital fluency, according to results of a survey by digital payments leader Visa.

Visa’s latest Green Shoots Radar survey found that Gen Z respondents in Asia Pacific tend to save their income, setting aside about 30 percent of what they earn.

In addition, survey results noted that increased awareness of financial goals (47 percent) drives these young individuals in the region to further build their savings, with about half committed to practicing better financial management (47 percent).

As a generation shaped by diverse experiences and perspectives, Visa noted that this group places significant value on cultivating a stronger mental and emotional approach toward financial management (36 percent).

“Gen Z is a generation that values flexibility and innovation, leveraging digital tools to navigate an increasingly dynamic financial landscape,” Visa Philippines country manager Jeffrey Navarro said.

“At Visa, we are committed to empowering Gen Z with secure, accessible, and innovative payment solutions that align with their needs and aspirations. Through our advanced technologies and educational initiatives, we aim to support their journey toward financial independence and long-term success,” he added.

Results of the survey showed that Gen Zs value adaptability and independence, as they seek flexibility in their financial journey, balancing enjoying the present and securing their future.

“To manage the rising costs of living, over half of Gen Z in APAC (57 percent) reduce spending and cut back on non-essential expenses. Additionally, 36 percent of this age group in the region value the importance of creating and following a strict budget as part of maintaining financial stability,” Visa said.

While Gen Z prioritizes saving, they also embrace opportunities to indulge in meaningful purchases, with 91 percent in the region willing to spend on big-ticket items.

Topping their list is travel and vacations (53 percent), followed by electronics, computers, and mobile devices (49 percent), according to the survey.

Moreover, the survey highlights that 60 percent of Gen Z in APAC already own a credit card, underscoring their adoption of cashless transactions.

Payment systems tailored to a digital-first lifestyle, including mobile wallets, contactless options, and integrated financial apps, provide ease and accessibility, enabling financial independence to become a tangible goal, Visa explained.

“Visa’s commitment to innovation ensures that Gen Z can transact confidently and securely. By integrating advanced technologies such as tokenization and fraud prevention, Visa provides a seamless and safe payment experience for this tech-savvy generation. Features such as Click to Pay and Tap to Pay by Visa also support Gen Z in fulfilling their financial priorities and pursuing their lifestyle aspirations with ease and seamless accessibility. By combining intuitive security with the convenience of a simple click or tap, Visa ensures that transactions are not only convenient but also secure,” the digital payments leader said.

Visa emphasized that its value-added services (VAS), such as acceptance solutions, issuing solutions, visa protect, and advisory services, empower businesses to innovate, grow and build trust in a fast-paced digital environment.

“By leveraging insights from Visa’s Advisory Services on Gen Z behavior in the Philippines, businesses can better engage their target audiences, improving customer acquisition, engagement, and retention,” Visa said.

The global digital payments leaders stressed that as Gen Z continues to navigate an increasingly digital world, their financial habits and preferences will shape the future of payments and commerce.