Building a Winning Mobile Payment App for Gen Z

Editor’s note: Mary Zayats, ScienceSoft’s Financial IT Principal Consultant, advises on winning mobile payment app development strategies and UX-friendly security mechanisms for Gen Z consumers. The interview is led by Stacy Dubovik, a financial technology researcher.

Mobile Payments Are Everywhere. Will Younger Generations Ever Need Web Payment Apps?

SD (Stacy Dubovik): For years, a common strategy for banks and payment service providers (further — PSPs) has been to focus on web payment apps and offer mobile as a complimentary option. Is this strategy still viable in 2025?

MZ (Mary Zayats): This strategy is hopelessly dated. Mobile payments have gained the upper hand in the consumer segment, and their usage is rising way more rapidly compared to web payments. Gen Zers, the first truly mobile-native generation, use mobile apps to access their banking accounts almost 4x more often than web browsers, so the expectation bar for mobile UX is higher than ever. In 2–5 years, as soon as Gen Alpha users reach their active spending age, the demand for mobile payment apps will likely surge even higher.

Given the smartphone-first lifestyles of younger audiences, prioritizing mobile consumer journeys is a must for banks and PSPs to secure their future customer base. Alternative payment firms like Zelle and Venmo (now part of PayPal), who originally built their service strategy around mobile apps, are in a winning position to retain Gen Zers. Traditional banks that are historically more web-centered will need to rethink their approach to digital servicing channels. Simply replicating e-banking features for mobile users, like banks used to do before, doesn’t work anymore. The flow should be the opposite, with every new payment feature designed for mobile first.

Moreover, modern mobile payment apps often have unique operational and security features that aren’t available in web banking solutions (think NFC payments, biometric authentication, push notifications, and the like). So, a mobile-first strategy also comes with the possibility to offer payers a wider functional scope and stronger protective measures.

SD: There are a lot of mobile payment apps on the market. But what’s popular with Gen Z? Were you a startup founder in 2025, what kind of payment app would you invest in to appeal to the youth?

MZ: Unless I’m a neobank who inherently needs a full-service mobile banking app, I’d definitely tap into the dynamic market of non-bank digital payment apps. Even though there are established players like PayPal and Stripe, every startup still has a chance to succeed. With Gen Zers using alternative payment methods three times more often than older groups, this would be the right niche to enter.

It’s impossible to compete directly with PayPal, but there are smaller niches that are less monopolized. Mobile Buy Now Pay Later (BNLP) and crypto payment apps are two examples of innovative solutions that quickly formed large standalone submarkets. To give you an idea of potential gains: Cashew Payments, a BNPL startup that involved ScienceSoft to develop its mobile BNPL apps for UAE Gen Zers, grew 900% in a year after app launch and netted $10 million for quicker expansion from a domestic lender. That’s the success I would aim to repeat as a startup founder.

A Buy Now Pay Later app developed by ScienceSoft for a UAE-based paytech startup

SD: So, mobile-only payments are the norm. But what about banking? Could, say, a neobank survive with only a mobile app and no web e-banking interface?

MZ: Mobile-only would be the natural choice for the majority of people under 25. However, for an all-demographics scenario, a mobile-only payment app won’t be enough. Web apps remain a top choice for the older generations, and even millennials prefer to make big purchases on their desktops, not phones. Also, web apps will hardly ever lose their dominance in business payments. Businesses deal with complex transactions that require automated data feeds, and web solutions are easier to integrate with enterprise systems.

One of my neobanking clients recently argued that mobile payment apps could not operate without a web version. Well, a mobile-only strategy can be viable, provided that it’s backed up by solid partnerships, brand-building, and marketing efforts. A ‘Super App’ by M-Pesa, a global pioneer in the field of mobile-only payments, is one example that shows mobile payment solutions can be self-sufficient as a core transactional method.

UX-First Payment App Design to Appeal to Gen Z

SD: From your experience, what do Gen Zers look for in their mobile payment UX? What to prioritize?

MZ: Gen Zers value quick and straightforward journeys. To cater to this group, prioritize modern minimalistic design and features contributing to the simplicity and speed of payment flows.

Intuitive dashboards, simple messages, and clear layouts simplify app navigation and remove payer friction. MVP-like design best resonates with the youth: one of ScienceSoft’s paytech clients serving over 18 million e-wallets bet on super-laconic UX and UI for its iOS app and reported higher user engagement after app revamp. Cluttered screens are a turn-off: go with concise menus and minimize the number of screens and widgets to cut the cognitive strain.

A mobile payment app built by ScienceSoft for a PSP serving 18M e-wallet users

If you want to cater to younger consumers, you can also introduce customization options to allow users to adjust the app’s widgets, dashboards, or color palette to their preferences. A dark mode is a small feature Gen Zers greatly appreciate for its aid in better readability in low-light conditions and saving energy on devices.

Maximize client-side automation to remove extra steps for users when onboarding and paying. Automated processing of customer documents and payer data auto-population in Know Your Customer (KYC) forms would streamline the flow for newcomers and prevent their churn at the door. One-touch payments with data auto-filing and default payment method assignment accelerate transacting across frequent spend categories. Recurring auto-payments and scheduled account top-ups and withdrawals are examples of features that eliminate payer routines altogether.

SD: OK, we have UI convenience figured out, but what about functionality? Do Gen Z expect the same payment features as the older generations, or do they need something special?

MZ: Younger users value instant P2P transfers, so enabling them to request payments and send money to friends quickly is a must. Split payments are another popular feature among the youth, who are often involved in group transactions. In one of ScienceSoft’s mobile banking projects, my colleagues implemented a feature that allowed users to transfer money to peers by using only a mobile phone number from their contact list, which made payer journeys much easier. By adding social elements like the ability to send funds with personalized messages, attach GIFs and photos, and leave notes to other contributors, the team ensured engaging bill-sharing experiences.

QR code payments are now considered a standard by Gen Z users. Not all mobile payment apps currently feature scan-and-pay capabilities, but your youth-centered app should. Support for QR codes enhances both digital and physical transacting.

Many Gen Z are frequent travelers and global e-shoppers, so low-fee cross-border payments are their critical priority. If you’re not a full-cycle PSP promoting its own payment methods, consider using third-party payment APIs that cover your target markets. From my experience, this is the quickest and cheapest way to integrate cross-border payment features into an app. APIs by Wise and PayPal’s Xoom are popular options that offer nearly global reach and affordable transaction fees. Both come with automated payment compliance checks.

For PSPs targeting international markets, app auto-localization is a good way to ensure smooth and engaging experiences for the global clientele. Here’s a process snapshot from my recent mobile neobanking app project: when a user first opens the app, it requests the user’s location, defines the location-relevant language, auto-translates the interface contents, and applies authorization and KYC checkup flows specific to the user’s region. In our implementation, we integrated the app with Lokalise for continuous auto-translation of app content and built custom scripts for region-specific KYC procedures.

Among all generations, Gen Z has the highest expectations for customer support speed and quality. Launching chatbots is a way to provide app users with immediate 24/7 assistance across common issues. Yet, I always warn my payment clients against relying solely on bots. Instant in-app messaging with human agents and convenient call-me-back forms are still critical to help users promptly report complex issues and prevent their frustration from limited support options.

SD: Everyone is implementing chatbots lately, but is it enough to stand out in the market? What killer features would you suggest to attract young users, and how much would they cost?

MZ: Conventional bots are a staple, but advanced assistants powered by large language models (LLM) are a strong differentiator. Generative AI bots offering real-time context-aware support and natural language guidance will appeal to Gen Zers who prefer quick, personalized solutions. Early cases show that switching from previous-generation to GenAI bots may bring a 2.8x growth in CSAT. With ready-made model APIs and cost-effective LLM customization techniques like RAG and prompt engineering, you’ll need 3–5 months and a budget of $120,000–$200,000 to build a tailored AI bot for your mobile payment app. But don’t wait too long: PSPs are aggressively piloting smart assistants, so the feature may quickly become commonplace.

Voice navigation will allow your app users to check balances and send payments in a swift and hassle-free way. Introducing this feature won’t require much custom coding: popular voice assistants like Google Assistant and Siri offer ready-made APIs for quickly integrating a voice command system into mobile apps. Voice control also enhances payment accessibility for users with vision and motion impairments, so the benefits go beyond reduced friction alone. In my experience, Gen Z users appreciate apps that accommodate users with disabilities even if they’re not personally using these features.

Offer cryptocurrency payments within your mobile app to step ahead of risk-averse competitors. Even basic features for transacting and storing crypto funds would secure the engagement and loyalty of tech-savvy users. Pre-built blockchain integrations by Coinbase, CoinGate, or BitPay will help you quickly introduce support for payments in popular cryptocurrencies like Bitcoin, Litecoin, and Ether.

Integrations with partners from ecommerce, telecoms, entertainment, and other domains is an evergreen strategy for differentiating your mobile payment app from competitors’ offers. Younger users value end-to-end in-app processes. Giving them the ability to purchase from non-finance businesses within the app will contribute to higher customer loyalty. Consider partnering directly with large marketplaces and service aggregators (e.g., food delivery services, gaming marketplaces) rather than many smaller businesses. Again, ready-made APIs will help incorporate partner offerings into your app.

A mobile banking app for Unibank by ScienceSoft

Virtual cards are not rare, but card providers may still differentiate themselves via prompt AI-powered KYC and advanced transaction security. My colleague Dimitry Senko delved deeply into ways to enable convenient and secure virtual card payments in his recent guide.

Security at the Expense of UX Is a Dead End

SD: Security remains a paramount concern in mobile payments. What features would you recommend for app protection?

MZ: Threat-aware Gen Zers expect maximum security, but they are very uncomfortable with overly intrusive security measures. For 39% of the youth, entering a PIN is a pain point. To secure your mobile payment app without hampering UX, opt for mechanisms that minimize payer friction but still adhere to PCI DSS, 3D Secure protocols, and your local regulations.

From the payer experience standpoint, mobile apps uniquely benefit from multi-factor authentication with push notifications. When used as a second factor, push notifications allow payers to verify transactions with one tap instead of, for example, manually entering one-time passwords sent via SMS. Plus, if a fraudster attempts to transact from the account, users are immediately notified of the unauthorized activity.

Applying biometric authentication instead of PINs and passwords will let younger consumers quickly authenticate in the app with a single touch or glance. Biometric authentication is both faster and more secure than traditional methods. As it relies on users’ unique biometric patterns, risks of third parties accessing a payer account without consent are minimized. Implementing biometric authentication in your app is pretty straightforward: you can either integrate market-available biometric matching tools like CloudABIS and AimBrain or use biometric APIs by mobile device and card network providers to build tailored features. Custom development is more expensive but safer in terms of data privacy.

As for the back-end security features, payment data encryption and automated fraud detection are your must-haves for protecting consumer funds. In ScienceSoft’s recent payment gateway development project, my colleagues implemented PA-DSS-compliant JSON Web Encryption mechanisms for transactional data encryption at rest and in transfer. Applying the same mechanisms in your app will simplify adherence to PCI DSS.

When it comes to fraud detection, old-school tools may fail to capture increasingly sophisticated payment fraud schemes. Implementing AI-supported behavioral and transactional analytics is by far the best way to tackle emerging risks. Predictive intelligence has already proven its efficiency: Mastercard piloted a GenAI-powered fraud detection solution early in 2024 and achieved a 20–300% increase in fraud detection rates while reducing false positives by 85%+.

Extra security checks are unavoidable when there are suspicious payment scenarios like an unfamiliar payer location, large sums sent to new recipients, or unusual payment details. Implement rules to trigger additional verification steps only in such cases to minimize friction during typical transactions.

Strategies and Tools for Fast Payment App Development — And Why Use Cross-Platform With Caution

SD: Banks and startups alike strive to release their apps as fast as possible. Could you recommend some tools to speed up development?

MZ: Backend as a Service (BaaS) solutions can save you a lot of time when building the mobile payment app’s server side. BaaS vendors offer user authentication services, database APIs, ready-to-use push notification functions, app hosting, and scalable cloud storage for in-app content. Google’s Firebase is one example of a robust BaaS service my team frequently uses in financial app development projects. Firebase Authentication service helps implement various authentication methods (including authentication via social media) in compliance with PCI DSS standards.

Mobile UI frameworks help build user interfaces with less code. Pre-built native components speed up the design and development processes while ensuring high-quality and consistent user experiences. My colleagues in mobile development usually rely on Material Design Components for Android and the SwiftUI framework — for iOS payment apps.

By using ready-made SDKs by large PSPs like PayPal, Stripe, and Square, you can quickly and easily launch versatile payment methods in your mobile payment solution. For example, PayPal’s Braintree native mobile SDKs offer pre-built APIs for integrating card, PayPal, Venmo, Apple Pay, and Google Pay payments in iOS and Android apps. The Braintree SDKs include drop-in mobile checkout UIs, so if you’re short on time and budget, you can roll out out-of-the-box screens with minimal adjustments. Be warned that in this scenario, you won’t have complete ownership of your app, and customizations will come at a cost. Still, it’s by far the quickest and cheapest way to introduce support for cards and alternative payment options.

The choice of mobile programming techs impacts the speed of both development and after-launch maintenance operations. For example, in ScienceSoft’s mobile banking app revamp project for Kapital Bank, our mobile tech leads suggested moving the Android app from Java to Kotlin and the iOS app — from Objective-C to Swift. It enabled faster development of new mobile banking features and helped the bank introduce app improvements quicker.

A mobile banking app for Kapital Bank by ScienceSoft

SD: Cross-platform technologies proved to reduce mobile development costs and timelines drastically. Are they the best bet for mobile payment apps, too?

MZ: Not all cross-platform techs are created equal. For example, hybrid frameworks like Cordova are out of the question for mobile payment apps. Such frameworks run way slower than native techs. An app that requires real-time data processing would experience severe performance bottlenecks in a hybrid implementation. Cordova-based apps are technically not apps but embedded browsers communicating with the device’s hardware via plugins. This increases app latency and may frustrate younger users who expect high responsiveness.

Cross-platform apps created using near-native frameworks like Flutter, React Native, and Xamarin perform equivalently to native iOS and Android apps. From my experience, near-native techs are the perfect cost-saving option for less complex specialized solutions like telecom and utility billing apps. Relying on near-native frameworks to create a codebase and tuning platform-specific UIs to give users a more natural appearance is still almost 2x cheaper compared to writing native code for each platform.

When it comes to complex payment apps, there’s one major drawback that leaves near-native alternatives behind native techs. Native mobile payment services, such as NFC and biometric authentication, are deeply integrated into the devices’ OSs and typically require native code to function properly. While Flutter and React Native allow developers to write native code modules for such integrations, the workarounds add complexity and reduce the cost benefits of a unified codebase.

Plus, when third-party API providers introduce updates, it takes time for near-native frameworks to catch up with the latest features. Native development enabling immediate integration with new OS-specific features and emerging third-party services would be the best choice for banks and PSPs who want to bring innovative services to their customers as quickly as possible.