Holiday Gifting Going Digital: Wells Fargo Study Reveals Growing Trend

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digital cash financial

Digital cash is money that exists only in electronic form and is used to make payments, like carrying coins and bills inside a phone or card instead of a pocket. It can be a digital version of government money or a token stored on a private network, and it matters to investors because it changes how customers pay, how companies earn fees, and how regulators oversee markets—factors that can affect revenue, risk and valuations.

digital payments financial

Digital payments are ways money moves electronically instead of using cash or checks, such as paying with a card, phone app, online bank transfer, or a stored account. For investors, they matter because they change how fast and cheaply companies sell goods and collect money, expand customer reach, and create new fee or data-driven revenue streams while also introducing technology, fraud and regulatory risks that can affect profitability and growth.

12/09/2025 - 03:00 PM

Gen Z and Millennials drive shift to digital gifts and tips, as most recipients value the freedom of digital cash

SAN FRANCISCO--(BUSINESS WIRE)-- A new Wells Fargo survey released today finds younger generations are driving a major shift toward digital cash gifts and holiday tips — favoring convenience and choice over traditional wrapped presents. Insights from the consumer survey look into the ways people give holiday gifts to family and friends, and holiday tips to service workers. The findings highlight gift giving and receiving preference. The study also reveals the median gift/tip to service workers is $50.

(Photo: Wells Fargo)

Key insights from the survey:

Physical presents dominate year-end gifting between friends and family.
- 65% of people prefer to give a physical gift, while 55% prefer to receive one.
- Gift cards are a close second, with 54% of people preferring to give them and 56% preferring to receive them.
Money, in many forms, is also desirable.
- 34% of people prefer giving cash or checks, while 18% prefer giving digital payments.
- More people prefer to be on the receiving end, with 48% preferring to get cash or checks and 29% wanting digital money.
Gen Z and Millennials lead the preference for digital cash gifts.
- 32% of Gen Z and 28% of Millennials prefer to give it versus 11% of Gen X and 7% of Baby Boomers.
- Conversely, 45% of Gen Z and 42% of Millennials prefer to receive digital payments, compared to Gen X (27%) and Boomers (10%).
Year-end gifting also extends to service workers.
- 60% of people plan to give a bonus or tip to service workers.
- Gen Z and Millennials are more likely to provide the bonus in the form of a digital payment.

Steve Selfridge, Product Management Director at Wells Fargo, says, “Zelle^®1users 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^®1 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.”

Digital gifting opportunity

The study found that while consumers do like receiving physical gifts, they also appreciate money. It also found that people are more comfortable receiving money than givers may realize.

34% prefer to give cash or checks, while 48% prefer to receive cash or checks.
Cash in the form of digital payments are more popular among Gen Z (32%) and Millennials (28%).
Giving cash is convenient, but consumers worry it feels like they don’t care.
- 65% agree that gifting cash prevents worry over gift wrap, postage, and shipping.
- 62% believe giving digital cash takes the guesswork out of gift giving.
- 57% say sending a digital gift feels impersonal, like they didn’t put any effort into the gift.
- 52% of those shipping a gift worry the gift may arrive late, or get lost or stolen.
- 32% want to give money digitally but wonder if it’s socially acceptable.
Consumers do want to receive digital cash but feel awkward requesting it.
- 65% appreciate receiving a digital cash gift because it gives the freedom to choose something they really want.
- 49% desire receiving digital cash but feel weird telling the gift giver.
- 36% appreciate receiving digital cash as a gift because they do not like most of the physical gifts they receive during the holidays.

“Many consider it to be a convenient gift option and takes the guesswork out of gift giving. People appreciate receiving a digital cash gift so they can spend the money on something they want, or even need. And, the study found that 36% appreciate digital cash because they actually do not like most of the physical gifts they receive. This is an easy way to make your friends and family happy this holiday season,” said Selfridge.

Saying thank you

In addition to gifting, the holidays are also a time to express gratitude to service workers by giving them a bonus or tip. 60% of consumers tip their service workers, such as their personal trainer, hair stylist, dog walker, babysitter, tutor, and delivery person. The survey found the median amount given to service workers is $50 and the average of holiday tips are highest in the South. Gen Z and Millennials are again most likely to provide tips via a digital payment app.

How holiday tips are given:

50% cash
26% gift card
11% digital payment
5% check

¹Enrollment with Zelle^®through Wells Fargo Online^® or Wells Fargo Business Online^® is required. Terms and conditions apply. To send or receive money with Zelle^®, both parties must have an eligible checking or savings account enrolled with Zelle^®through their bank. Transactions between enrolled users typically occur in minutes. For your protection, Zelle^® should only be used for sending money to friends, family, or others you trust. Neither Wells Fargo nor Zelle^® offers purchase protection for payments made with Zelle^®- for example, if you do not receive the item you paid for or the item is not as described or as you expected. Payment requests to persons not already enrolled with Zelle^® must be sent to an email address. For more information, view the Zelle^® Transfer Service Addendum to the Wells Fargo Online Access Agreement. Your mobile carrier’s message and data rates may apply. Account fees (e.g., monthly service, overdraft, Small Business Account Analysis fees) may apply to Wells Fargo account(s) with which you use Zelle^®.

Zelle^® and the Zelle^® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

About the survey

The findings are from a Wells Fargo survey, with data collection provided by Ipsos, conducted between October 30 - November 3, 2025. A sample of 2,010 American adults, aged 18 and older, were interviewed online in English, as part of Ipsos Omnibus shared survey program. The results of this research have a credibility interval of plus or minus 2.5 percentage points for all respondents. Surveys were collected as part of a multi-client Omnibus program, where questions on various topics are included in one interview and clients share demographic information collected.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $2.1 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 33 on Fortune’s 2025 rankings of America’s largest corporations. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com

LinkedIn: https://www.linkedin.com/company/wellsfargo

News Release Category: WF-ERS