Winning Gen Z's Wallet: Why Faster Payments Matter for Gig Workers

For Gen Z, money moves differently because life moves differently. This generation grew up in a digital-first world where nearly everything is instant: communication, shopping, entertainment, transportation and work opportunities. And with that being the foundation of their reality, it also shapes their expectations for financial services.

That’s particularly true for a generation that is more ingrained than any other in the world of freelance and gig work as their main source of income. If their ride-share shift ends at midnight, their freelance design project wraps on a Sunday or they complete a long weekend of delivery orders, waiting two or three business days for money that has already been earned does not feel like simply a minor inconvenience…it feels outdated.

That gap matters, because flexibility, autonomy and digital access are not side benefits; they are critical to how younger people define work. But gig income often arrives through traditional payment windows that were not designed for this type of workforce. Faster payment rails such as Same Day ACH, FedNow and RTP can help close the gap between earning money and actually being able to use it.

For credit unions, that creates both a challenge and an opportunity: either meet younger members where their financial needs and expectations lie, or risk watching fintechs become their primary financial relationship.

Understanding the Gen Z Mindset

Gen Z is comprised of individuals born between 1997 and 2012, representing roughly 70 million people in the United States. They already hold a significant portion of the labor market, making up approximately 18 percent of the U.S. workforce as of 2024 and surpassing retirement-age baby boomers in workforce share. They are also the first truly digital-native generation, with constant connectivity shaping how they communicate, learn, purchase and bank.

It’s no surprise that they are often referred to as the “zoomer” generation, as they:

• Expect digital tools to be intuitive, fast and available whenever they need them.
• Are highly comfortable switching platforms when a better experience is available. In fact, according to PYMNTS Intelligence, they are almost three times as likely as other cohorts to switch to alternative payment methods and more than twice as likely to move to another financial institution.
• Face financial pressures many believe are different from those experienced by previous generations.
• Are projected to possess significantly more spending power by 2030, making early financial relationships especially important.

For credit unions, the takeaway is obvious: Gen Z is not a future audience. They are already members, employees, borrowers, business owners and gig workers. The institutions that earn their trust now have a chance to build relationships that last well beyond their first checking account.

Gen Z and the Rise of Gig Work

For younger workers, gig work is not just a temporary stop on the way to a traditional career. It is increasingly part of how they build income, independence and flexibility. Research shows that Gen Z participates in gig and freelance work at higher rates than older generations did at similar points in life. More than half of Gen Z professionals have done freelance work, and Gen Z accounts for a meaningful share of the U.S. independent workforce, despite being one of the youngest working generations.

Why Payment Speed Is an Economic Issue

While the gig economy may offer the kind of flexibility that Gen Z prefers, it can also create unpredictable cash flow situations. Many gig and hourly workers are paid through platform apps, and when those payments move through traditional ACH timelines, funds may take one to three business days to arrive. For a worker finishing a Sunday shift, that could mean waiting until Tuesday or Wednesday for money they have already earned.

That delay is more than a technical processing issue. It can determine whether someone can buy groceries, put gas in the car, avoid an overdraft fee or pay a bill on time. For young adults building their financial lives around a more variable income, access to earned money is a major part of the conversation. If a fintech app offers faster access than a credit union, the decision on where to bank may be made based on need versus trust and loyalty.

How Faster Payment Rails Close the Gap

When a gig platform pays a worker, the funds travel through a payment rail. That rail determines how quickly the money arrives. Standard ACH is familiar and deeply embedded in payrolls, but it was not built for instant access and maintains slower processes and timelines. With the addition of Same Day ACH, timing may be improved by enabling funds to arrive the same business day, but it still operates within defined processing windows. The FedNow Service and RTP go further by supporting instant settlement on a consistent 24/7/365 basis, including weekends and holidays.

• Same Day ACH: Helps shorten traditional ACH timelines, but still has limits tied to business-day processing.
• FedNow Service: Offers instantaneous transaction processing through the Federal Reserve designed to broaden access across financial institutions, including credit unions.
• RTP: Operated by The Clearing House, this option provides real-time payment capabilities and has continued to grow in participant reach and transaction volume.

For credit unions, the receive side of instant payments is especially important. If a gig platform can push an instant payment but the member’s credit union account cannot receive it in real time, the value is lost at the final step. That is where fintechs often step in. Chime, Cash App and similar providers have built their brands around speed, convenience and access. Credit unions have the ability to compete in that same circle, but only if the member’s trusted account also supports the speed their work/life demands.

The Faster Payments Outlook

Faster payments are no longer experimental. They’re ready to help your credit union meet member needs now – and the numbers say so.

In 2025, Same Day ACH:

• Processed 1.4 billion payments totaling $3.9 trillion
• Volume grew 16.7 percent and dollar value grew 21.4 percent year-over-year
• Set an all-time monthly record of 172.1 million payments in December
• Had a total value approximately double that of RTP, illustrating how deeply ACH remains embedded in payroll and business payments

The FedNow Service:

• Was launched by the Federal Reserve in 2023
• Participation surpassed 1,800 financial institutions across all 50 states
• Transaction limit was raised to $10 million in November 2025
• Average transaction value exceeded $100,000 (although a decline in these values suggests an uptick in use cases beyond just large corporate transactions)

RTP:

• Was launched in 2017 by The Clearing House and is operated by a group of large banks
• Participation includes 1,3222 financial institutions, of which 94 percent are smaller community banks and credit unions with less than $10 billion in assets
• Payments since 2017 now exceed 1.6 billion, with approximately 1.6 million made per day
• 142 million payments processed in the second quarter of 2026, with a value at $576 billion
• Set a single day record for processing on May 1, 2026 with a 2.27 million transactions worth $8.62 billion
• Transaction limit also raised to $10 million in February 2025

As you see, each rail has a role to play, but the broader message is clear: payment expectations are changing. Consumers, particularly Gen Z and beyond, are becoming more accustomed to real-time money movement, and are among the least likely to tolerate delays that feel burdensome and unnecessary.

Why This Matters for Credit Unions

It’s true that credit unions have a trust advantage with younger consumers, but trust alone will not keep a member who cannot access their own earnings when they need them. Someone who opens a fintech account because it solved their paycheck problem may be less likely to turn to a credit union for future financial needs. On the other hand, if they can count on their credit union for instant transactions, they’re more likely to be checking account holder at 22 who becomes a mortgage and auto loan member 10 years down the road.

Payments that meet the needs of younger generations and expectations that will carry into the future ensure:

• The credit union account remains at the center of a member’s financial life.
• A reduction in the number of members who route their earnings through fintech alternatives.
• Support for gig workers, hourly employees and small businesses with faster access to funds.
• Strengthened loyalty at an early life stage when long-term relationships are still being formed.
• Future lending opportunities through immediate disbursement of approved funds.

The Bottom Line

Gen Z is reshaping the connection between work, income and financial access. They are building careers in a world where work may happen outside traditional hours, across multiple platforms and without predictable payroll cycles. For this generation, faster payments are not just an upgrade, they are a practical solution to a real economic problem.

Credit unions that enable instant payment capabilities can turn speed into service, convenience into loyalty and early financial access into long-term member relationships. The opportunity is not simply to keep up with fintechs – it’s to prove that credit unions can deliver the modern experience younger members expect while preserving the trust, guidance and member-first mission they already know and value.

Erica Johnson is the VP of payments at Vizo Financial. Her role encompasses the oversight of the Corporate's payments operations, including instant payments, foreign currency, bill pay, wires, ACH, Positive Pay, cash services and the payments support center. Ms. Johnson is an Accredited ACH Professional (AAP), an Accredited Faster Payments Professional (AFPP), a Credit Union Development Educator (CUDE) and a National Check Professional (NCP).