Gen Z and Millennials expect in-app payments or they’ll take their business elsewhere. The best transactions are invisible, say 60% of consumers, and it’s time for businesses and the software that empowers them to catch up.

A new survey of 1,000 U.S. adults by NMI, a global leader in embedded payments infrastructure, reveals a rising preference for invisible transactions: 64% of respondents embrace biometric authentication like Face ID or fingerprints, and 59% say the best transactions are the ones that feel like they never happened. 

Who’s Powering the Future of Payments 

While most consumers favor in-app and seamless payment experiences, savvy younger generations and busy parents are pushing businesses to adapt fastest. Among parents with children under 25 living at home, 72% say they would prefer to pay for everything through an app if they could, compared to 53% of consumers overall, and 64% of Gen Z and Millennials say they’ll take their business elsewhere if in-app payments aren’t an option. The subscription model is especially popular among Millennials (69%) and Gen Zers (66%), who prefer recurring payments for frequently used goods and services. 

For some generations, preferences remain divided – some consumers favor card-present and cash options, and others are ready for transactions to be completely invisible. For example, 43% of Baby Boomers are uncomfortable using biometric authentication, while 40% embrace it for its speed, security, and convenience. Income level also plays a role among consumers earning less than $75K annually. Half (54%) use in-app payments only a few times a month or less, yet half (49%) say they’d pay for everything through an app if it was possible.

Peter Galvin, Chief Growth Officer at NMI said:

“Merchants beware! Younger generations are setting the pace when it comes to payment technology, and businesses that want to remain competitive need to keep up. Millennials, Gen Z, and busy parents expect seamless, app-based, and subscription-style payments that fit into their daily lives. And if businesses can’t meet those expectations, these customers are quick to shift their loyalty and move on. To succeed in this evolving landscape, brands must prioritize flexible, mobile-first solutions that cater to how younger audiences actually live, shop, and pay.”

Why No Industry is Immune 

In-app payments are set to play an even bigger role in business choice throughout 2025. Fifty-nine percent of consumers say it’s important that merchants offer app-based payments, and half (50%) would choose a business that does over one that doesn’t. Already, half of respondents use in-app payments weekly or more, and 55% expect to increase their usage this year. 

While all consumer-facing industries should take note of the growing demand for in-app payments, respondents identified several sectors where they are especially eager to use them. Sixty-eight percent want to use in-app payments for food and beverage purchases, like restaurants, coffee shops, bars, and delivery services. Retail lands in the number two spot, with 53% of consumers opting for in-app payments in this sector. Entertainment and recreation (e.g., concerts, movie theaters, theme parks, and sporting events) and transportation and travel (e.g., ride-sharing, public transit, parking, airfare, and hotels) tie at number three, each drawing interest from 45% of consumers. Consumers also want to pay through apps in some unexpected sectors. On average, 37% of consumers are interested in using apps to pay for everyday services like car washes and dry cleaning, and 30% for home services such as landscaping and plumbing. Among parents, the interest in these sectors rises significantly, to 49% and 42%, respectively.

Merchants and Vertical SaaS Providers, Time to Step Up 

The findings highlight the urgent need for businesses to support a broader range of modern and innovative payment methods, or risk losing customers to competitors that do.

This pressure also extends to vertical SaaS providers — companies delivering the day-to-day software used by consumer-facing businesses. Often, these platforms overlook embedded payments, creating a fragmented and outdated customer experience.

SaaS providers partnering with a trusted payments provider to embed payments directly into their software, not only helps their clients offer flexible, secure payment options but also unlocks new revenue streams from payment monetization — a critical advantage in today’s market.

Galvin added:

“This isn’t just a wake-up call for merchants. SaaS providers must also embed modern payment technology directly into their platforms. Software companies that leverage the right payment provider not only deliver a better customer experience, but they also align with evolving consumer expectations and drive new revenue streams. In today’s market, payments are no longer a feature — they’re a growth strategy.”

Learn more about in-app and embedded payments for SaaS platforms:

• Download our survey report for further insights into consumer expectations around in-app payments
• Download our eBook on the business benefits of embedding payments into your SaaS platform
• Visit our resource hub for articles, guides, and industry insights
• Explore our developer sandbox for hands-on access to our APIs, pre-built SDKs and modular tools – designed for SaaS builders

For SaaS providers looking to embed payments into their solutions, visit NMI at SaaStr Annual, San Mateo, CA, May 13-15, 2025, Booth  #SG207 and ask for a demo.