Conventional wisdom is that younger generations are tech-savvy and the most willing to try new devices, apps and payment methods.

However, PYMNTS Intelligence research from the How People Pay Report, titled “eCommerce for All: How Consumers Across Generations Make Purchases Online,” found that any generation gap is rapidly closing when it comes to commerce, in a few key areas.

In retail and travel spending, the data showed similarities between different cohorts in moving to digital channels. Online shopping adoption remained relatively consistent last year. Overall trends remained steady, as end-of-year surveys showed that the share of retail transactions consumers made online was 26% in both November 2023 and November 2024.

As for the generational divide in retail and travel purchases, online purchasing rates were relatively consistent across generations. For example, 27% of baby boomers and seniors and 25% of Generation X consumers made their last retail purchase online. These figures were similar to the 26% of millennials and 23% of Generation Z consumers who did the same.

Why Credit Is the Online Payment Choice

It’s well-known that in the wake of the pandemic, there was a return to in-store shopping. In separate PYMNTS Intelligence research, as 2024 got underway, the trend toward using digital features in a brick-and-mortar setting dominated. The data showed there was a 65% increase in shopper satisfaction when using digital assistance in the aisle.

However, there’s a bit of bifurcation in the mix. In stores, consumers preferred debit cards, with 42% using a debit card for their last retail purchase. On the other side, 28% used a credit card. In other words, consumers are 50% more likely to use debit cards than credit cards in physical retail locations.

When using digital channels, shoppers preferred credit cards over debit. While 38% of consumers used credit cards to pay for their last online retail transaction, 30% used debit. This makes consumers 27% more likely to use credit than debit for online retail shopping.

eCommerce Was a Tailwind for Retail Sales in 2024

At a high level, eCommerce has been a key tailwind to overall retail sales momentum. Nonstore retailers, a designation that includes eCommerce merchants, saw sales leap 6% year on year in December.

The stats are underscored by the slew of earnings reports that are now rolling in, where big banks have given the first nuggets of information about the use of credit and debit. J.P. Morgan and Citigroup indicated that spending on credit cards remained healthy. J.P. Morgan’s filings revealed an 8% annual increase in credit and debit sales volumes while Citi’s branded card sales volumes were up 5%.

Rewards play a role in credit card use, as 1 in 5 cardholders redeem credit rewards at least monthly. Roughly 30% of frequent card users reported that they redeem rewards, cash back, points or miles earned on their primary credit card at least monthly.