What Does Gen Z Use Instead of Wallets?

 Gen Z is ditching the traditional wallet faster than you can say “contactless payment.” Convenience, style, and security now trump leather folds and coin pockets. But what’s replacing them? The answer lies in the slim, smart, and often metallic innovations tucked in back pockets and belt bags.

Why Is Gen Z Moving Away From Traditional Wallets?

Let’s start with the obvious: Gen Z has grown up in a fully digital world. Raised on Apple Pay, Afterpay, and QR codes, they see physical cash as about as useful as a DVD player.

Here’s why old-school wallets are fading from their rotation:

• Digital-first mindset – Gen Z is comfortable paying with phones and smartwatches.

• Bulky = outdated – Thick leather wallets feel like relics from a dad's jeans drawer.

• Security awareness – RFID theft and card skimming aren’t just boomer concerns anymore.

• Fashion meets function – Style matters. Big time.

This generation doesn’t just want something that works. They want something that feels right. And a bulging bifold isn’t cutting it.

What Are Gen Z Using Instead of Wallets?

So, what’s in their pockets instead?

1. Phone Wallets and Digital Wallet Apps

You saw this one coming.

Most Gen Z'ers have Apple Pay or Google Wallet locked and loaded. Cards, IDs, and even public transport passes now live in their phones. For many, their phone is their wallet.

• Tap-and-go at Woolies? Yep.

• Scan to split bills on Beem It? Too easy.

• Store loyalty cards? All in the cloud.

Anyone who’s ever stood behind a Gen Z tapping their phone, then checking their DMs while waiting, knows the flow.

2. Slimline Card Holders

When a physical backup is needed (because not every venue has caught up), sleek card holders are the go-to.

These minimalist options hold only the essentials—usually 3–5 cards—and slip easily into a front pocket. No coin pouch. No fluff.

They're often leather, silicone, or made from recycled materials (sustainability matters).

3. Metal Wallets with RFID Blocking

Here’s where form meets function.

Gen Z loves a bit of tech, and metal wallets with RFID protection are climbing the trend charts. They’re slim, durable, and scream modern utility—like a Swiss Army knife in the shape of a credit card.

Brands like Ridge and Secrid have made these wallet alternatives practically a status symbol.

Bonus? These wallets often come with modular features—money clips, air tags, even bottle openers. If James Bond had to carry a wallet today, this would be it.

4. Phone Cases with Built-in Card Slots

You’ve probably seen these: phone cases with a card slot on the back.

Perfect for slipping in a driver’s licence and a debit card—just enough for a night out or a quick errand. They're especially popular with university students who can’t be bothered carrying a bag.

Less to carry, less to lose.

5. Wearables (Smart Rings and Watches)

They may still be niche, but smart rings and watches are gaining traction.

Tap your ring to pay? Sounds like sci-fi. But Gen Z’s on board.

Wearables offer ultra-convenience for festivals, gyms, and travel. Plus, they’re a bit of a flex—like having a car key that’s also your watch.

What Makes These Options So Appealing?

Apart from convenience and aesthetics, it’s about identity expression.

Gen Z blends tech and fashion like no generation before. They’re not just selecting what’s functional—they’re curating a vibe. That slim metal wallet isn’t just about holding cards. It’s an accessory. A personality statement.

There’s also a whisper of Scarcity at play (hello, Cialdini). Limited-edition metal wallets? Custom phone cases? Smart rings with pre-orders that take months to fulfil? That just fuels the appeal.

Plus, Gen Z trusts social proof—they look to influencers, TikTok reviews, and Reddit threads. If someone they follow swears by a minimalist wallet or flaunts a pay-by-watch setup, chances are they’ll look into it too.

Is Cash Dead to Gen Z?

Not completely—but it's definitely on life support.

Gen Z will use cash when absolutely necessary (think op shops or local footy club sausage sizzles). But in their minds, physical money is inconvenient, unsanitary, and—let’s be honest—easy to lose.

In a 2023 survey by Afterpay, over 70% of Gen Z respondents said they rarely carry cash. It’s digital or nothing.

FAQ: Gen Z Wallet Trends

Do Gen Z still carry physical wallets at all?
Some do, especially when going somewhere phones might be risky (like the beach or a festival). But even then, it’s often a card holder or RFID-protected metal wallet.

Are metal wallets safe for cards?
Yes, especially those with RFID-blocking tech. They protect against digital theft and keep cards physically secure thanks to their rigid design.

What's the most popular digital wallet among Gen Z in Australia?
Apple Pay leads the pack, followed by Google Wallet. Apps like Beem It are also widely used for peer-to-peer transactions.

Final Thought

Gen Z’s move away from traditional wallets isn’t just about tech—it’s about values. They want streamlined, secure, and stylish. Whether it’s a smartphone doing double duty or a metal wallet with James Bond vibes, one thing’s clear: the wallet has evolved.

And if you're curious about what those metal wallets look like in practice, this breakdown gives a closer look.

Also, check out this insight from the Reserve Bank of Australia for a broader view on the rise of digital wallets nationwide.