The way travelers pay for their trips is changing at lightning speed—and hotels risk being left behind. New research from TerraPay, a global payments infrastructure company, reveals a striking gap between traveler expectations and hotel readiness: more than a third of hotels worldwide still can’t accept digital wallets (35%), even as these tools become a preferred payment method for younger generations.

For Gen Z travelers, digital wallets aren’t just a convenience—they’re a default. With 79% of them using mobile-first payment options like Apple Pay, Google Wallet, or PayPal, they expect instant, secure, and frictionless transactions wherever they go. This shift is part of a broader transformation in global commerce, where real-time payments are projected to account for 27% of all transactions by 2028.

Yet, the hospitality industry—particularly smaller and independent hotels—is struggling to keep up. While airlines, online travel agencies, and even some boutique accommodations have embraced instant payment methods, many hotels are still relying on outdated systems, risking not only revenue loss but also their appeal to a tech-savvy audience that demands speed, transparency, and convenience at every step of their journey.

The Instant-First Generation

Gen Z, often dubbed the “instant generation,” expects payments to be as seamless and swift as social media scrolls. TerraPay’s VP of Payments, Koert Grasveld, underscores the challenge:

“With an estimated attention span of just eight seconds, Gen Z expects payments to be as fast and effortless as scrolling through their phones. Digital wallets perfectly meet these demands, enabling real-time payments that deliver lower costs, broader access, increased inclusion, and new business models.”

Notably, real-time transactions are forecast to make up 27% of all global payments by 2028, marking a rapid shift toward instantaneous, cross-border commerce.

Digital Payments and Social Influence

Social media isn’t just inspiring travel—it’s driving bookings. According to the same data:

• 40% of Gen Z travelers booked a holiday directly due to TikTok content
• 49% rely on Instagram for travel inspiration

Meanwhile, 80–90% of Gen Z reservations come via mobile devices, typically with integrated digital wallet solutions—so if hotels aren’t ready to meet this demand, they risk losing potential guests.

Why the Lag?

Especially among small property operators, several systemic issues hinder digital wallet adoption:

• High transaction fees
• Slow and complex settlement processes
• Limited access to advanced digital tools

These inefficiencies not only undermine cash flow but also limit global competitiveness—a critical concern in today’s fast-digitizing hospitality landscape.

The Path Forward

The intersection of user behavior, social media, and payment innovation spells one clear message: embracing digital wallets is not optional—it’s essential. With 97% of transactions on TerraPay’s platform reportedly settled instantly, the technology is already mature, but widespread infrastructure adoption remains lagging.

For hotels—especially smaller operators—the time to adopt digital wallet solutions is now. Doing so isn’t just about convenience; it’s about remaining relevant and competitive in a market increasingly ruled by immediacy and mobile-first experiences.