CHICAGO — A new analysis from BERA.ai finds that personal connection — not just speed or security — is emerging as a key driver of brand strength among Generation Z consumers, particularly in payments and digital wallets.
According to the Chicago-based analytics firm, data across more than 2,000 brands show that “personal connection” accounts for more than half of the variation in overall brand equity among Gen Z, and more than three-quarters of the variation within finance-related categories such as banking and digital wallets.
The report challenges the long-standing view that payment brands compete primarily on functionality, suggesting instead that emotional relevance and identity alignment play a critical role in how younger consumers evaluate financial services.
What’s Reflected
BERA.ai said personal connection reflects whether a brand feels integrated into a consumer’s life, aligns with their values and is worthy of ongoing engagement. Among Gen Z users, that connection can transform digital wallets from simple tools into everyday essentials, strengthening long-term loyalty.
The analysis highlights major digital wallet providers — including Zelle, PayPal, Venmo, Apple Pay and Amazon Pay — noting that brands with stronger personal connection scores also tend to lead in overall brand equity. PayPal, for example, ranks among the highest in both measures, while other providers trail in varying degrees.
Performance Remains Critical
Still, the firm emphasized that emotional connection does not replace functional performance. Payment apps must remain user-friendly, intuitive and reliable, as even strong emotional ties cannot compensate for poor usability.
Instead, BERA.ai said, the findings point to a shift in how differentiation occurs in a maturing payments market. As core features become increasingly commoditized, competitive advantage is moving toward emotional and experiential factors.
The report also cites broader behavioral trends supporting that shift. Research referenced in the analysis indicates more than half of Gen Z consumers now use cash only as a last resort, with many viewing cash users as outdated. Digital payments, the firm said, are increasingly tied to how younger consumers manage money and express their financial identity.
The ‘Equity Leaders’
“As digital wallets continue to move from occasional tools to routine financial companions, the brands that feel personally connected will be the equity leaders,” the report concludes.
The analysis covers Gen Z consumers, defined as those born between 1997 and 2012, and is based on data collected between the second quarter of 2024 and the second quarter of 2025, with sample sizes ranging from about 2,000 to nearly 9,000 respondents per brand.
