Visa Malaysia, a world leader in digital payments, today released findings from its Gen Z Decoded study1, revealing how Malaysia’s 7.7 million individuals between the ages of 14 and 27 – representing 23 per cent of the country’s population – are reshaping financial habits, brand loyalty, and digital lifestyles.
A community of pragmatic optimists deeply rooted in tradition and family values, Gen Zs are purposeful consumers eager to define success on their own terms. Digitally native, they value seamless convenience and embrace digital payments yet remain financially cautious – choosing to spend with brands they perceive as authentic and aligned with their personal values and ethics.
Previn Pillay, Country Manager, Malaysia, Visa said, “Gen Zs are emerging as the next wave of earners, spenders, and cultural influencers, whose financial behaviours, personal beliefs, and ethical priorities are redefining the future of commerce and culture – both locally and globally. Trust, security, and authenticity are central to engaging with this generation, and Visa is deeply committed to understanding their evolving expectations and building products and solutions that empower Gen Zs to transact confidently and meaningfully in a digital-first world.”
Pragmatism Rooted in Responsibility
Financial independence and security are top priorities for Malaysia Gen Zs, with one in two (50%) identifying them as key life goals. The study reveals that 61 per cent of Gen Zs are already actively taking steps toward achieving their financial goals. These include tracking their spending through detailed budgeting, adopting frugal habits to curb impulse purchases, and supplementing their income through freelancing and side gigs. Despite their youth, many are already planning ahead – saving for major expenses (35%), setting aside emergency funds (33%), and planning for retirement (32%). Notably, 53 per cent of Gen Zs are investing into gold and digital currencies, signalling an openness to alternative wealth-building tools.
Family is the cornerstone of financial discipline for Malaysian Gen Zs. Many people credit their budgeting and saving habits, such as saving allowances and prioritising needs over wants, to lessons learned directly from their parents. These early teachings shape their financial outlook and contribute to a strong desire to provide for their loved ones. In fact, many Gen Zs actively contribute to household needs, reflecting a deep-rooted commitment to family well-being and shared financial responsibility.
Digital Payments Are the Preferred Way to Pay
This growing confidence in financial literacy is also shaping how Gen Zs interact with money daily. As they embrace modern tools and seek advice from digital platforms and peers, their financial behaviours are evolving rapidly – especially in how they choose to pay. Speed and convenience are key drivers of this shift, as Gen Zs decisively move away from cash.
“Over half (53%) of Gen Zs prefer digital-first payment tools, reflecting their desire for seamless and secure transactions. Recognising their preference for speed and convenience in making payments, we introduced Click to Pay to make the online shopping experience faster and more secure. This password-free checkout experience saves time by eliminating the need to manually enter payment details. In addition, with recent innovations including Visa Payment Passkeys, we are advancing digital identity solutions that enable Gen Zs to authenticate safely and effortlessly across devices,” added Previn.
While mobile e-wallets lead in frequency of in-store use, debit cards remain a core financial tool – owned by nearly 60 per cent of Gen Zs. Interest to use credit cards is also rising, with one in five (17%) planning to sign up for one in the coming year – driven by benefits such as enhanced security features, ease of access to cash, broad acceptance across stores, and cashback and rewards.
Passions with a Purpose
The Gen Z lifestyle is deeply intertwined with digital culture, entertainment, and emotional well-being. In Malaysia, social media platforms like TikTok (68%), YouTube (61%) and Instagram (60%) dominate their daily screen time. More than just sources of entertainment, they are integral to how Gen Zs stay connected and informed, shaping their identity and validating their place within the global community. Nearly half (48%) have made purchases directly from social media ads, highlighting the influence of digital trends on lifestyle aspirations and spending behaviour. Trust matters, however, as 44 per cent say they are likely to trust product or service recommendations from influencer or creators they follow.
Entertainment is also a vital outlet for seeking joy and stress relief. Gaming and music serve as meaningful escapes for Gen Zs, with 61 per cent identifying as active gamers and 56 per cent describing themselves as passionate about music. More than just hobbies, these passions deliver immersive, emotional experiences that allow them to enhance resilience, foster belonging in their communities, and support personal growth. Whether it’s buying music merchandise or making in-game purchases, Gen Zs seek seamless, secure digital payment options that match their fast-paced, emotionally driven lifestyles.
“Gen Zs are uniquely pragmatic, value-driven, and intentional – shaping their world through choices that reflect both purpose and personality. Today, they expect more than just traditional shopping perks. That is why Visa has evolved its solutions and benefits into payment experiences that align with the diverse priorities of Gen Z – supporting how they live, connect, and express themselves.
Whether it’s enabling seamless online purchases, creator-led commerce, or secure peer-to-peer payments, we are enabling new ways to engage with this next generation of consumers. Brands must rethink how they connect with this discerning generation – not just through social platforms, but by elevating what they can offer to meet Gen Zs in the spaces where they seek inspiration, connection, and culture,” said Previn.
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