The news: Gen Z’s spending and repayment habits around group events like travel and entertainment are diverging from previous generations, per a report from Zelle.

Gen Zers are the biggest average group travel spenders for major events like Coachella, the World Cup, and the Super Bowl by generation: 37% of the cohort report spending at least $2,501 or more per person.

At the same time, Gen Zers also break with older generations in how to pay in groups. While millennials and older favor splitting costs individually during the event, Gen Zers usually have one friend front the bill with the expectation of being paid back later.

Why this matters: The process of delaying payments or settling up in full is becoming a stressor for Gen Zers.

• 76% of Gen Zers who have fronted for a group expense said that they haven’t been repaid.
• 25% of Gen Zers said repayment issues have damaged a relationship long-term; 14% said they’ve ended a friendship or relationship because of repayment disputes.
• And 47% of Gen Zers have gone into debt to cover group expenses, per EWS.

Gen Z’s deep engagement with the experience economy is a prime opportunity for digital P2P payments to simplify settling up. Recent updates like Venmo groups, Cash App pools, and Splitwise payments have helped to simplify group repayments even more with set goals in-app and visualizations of outstanding debts.

Recommendations for P2P providers: Following Cash App’s lead for buy now, pay later P2P payments may offer some Gen Zers relief for paying back peers after expensive group events. Combining cash-flow assistance with easy repayment channels could help secure younger consumers' loyalty to a P2P brand.

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