Younger shoppers are quietly rewriting holiday gifting etiquette, and Wells Fargo says digital cash is at the center of that shift. While physical presents still dominate, Gen Z and Millennials are driving strong demand for instant, app-based gifts and tips that trade wrapping paper for flexibility and speed.
Physical gifts still rule, but money is moving
The San Francisco-based bank’s new survey of 2,010 U.S. adults finds that 65% prefer to give physical gifts, and 55% prefer to receive them at year-end. Gift cards sit close behind, with 54% preferring to give and56% to receive them, underscoring how practicality now rivals surprise factor under the tree.
Money is also highly desirable: 34% prefer giving cash or checks, and 18% prefer giving digital payments, while 48% would rather receive cash or checks, and 29% want digital money.
Gen Z and Millennials push digital cash mainstream
Younger generations are leading the move to digital cash gifts. 32% of Gen Z and 28% of Millennials prefer to give digital payments, compared with just 11% of Gen X and 7% of Baby Boomers.
On the receiving side, 45% of Gen Z and 42% of Millennials prefer digital payments, compared with 27% of Gen X and 10% of Boomers. This generational split signals where holiday gifting is headed: fewer envelopes, more app notifications.
Zelle-powered convenience meets gifting guilt
Steve Selfridge, Product Management Director at Wells Fargo, said, “Zelle® users appreciate the convenience, safety, and reduced risk when compared to sending cash or checks — both of which can be lost, stolen, or delayed in the mail. More people are seeking the convenience of Zelle® because the cash is delivered directly into the account of the person you’re gifting or tipping. The money is ready for the receiver to use however they wish.”
Zelle® users value the convenience, safety, and lower risk compared with mailing cash or checks, which can be lost, stolen, or delayed. Because money lands directly in the recipient’s account, they can use it immediately, however they want.
At the same time, emotions around money remain complicated. 65% agree that gifting cash avoids worries over gift wrap, postage, and shipping, and 62% say digital cash takes the guesswork out of gifting, but 57% feel that sending a digital gift seems impersonal. Another 32% want to give money digitally, yet worry whether it is socially acceptable.
Recipients love digital cash more than givers think
The survey suggests givers may be overthinking it. 65% of people appreciate receiving digital cash because it lets them choose something they really want, and 36% say they like digital gifts because they do not actually enjoy most of the physical gifts they receive. Still, 49% admit they would like digital cash but feel awkward asking for it.
“Many consider it to be a convenient gift option and it takes the guesswork out of gift giving,” Selfridge said, adding that digital cash is an easy way to make friends and family happy because they can spend it on something they want or need.
Holiday tips go digital too
Gifting is not just for friends and family—60% of consumers say they tip service workers such as trainers, hair stylists, dog walkers, babysitters, tutors, and delivery drivers during the holidays. The study finds the median tip or bonus for service workers is 50 USD, with average tip amounts highest in the South.
When it comes to how those tips are delivered, 50% give cash, 26% use gift cards, 11% send digital payments, and 5% write checks, with Gen Z and Millennials again most likely to reach for a payment app.
