Gen Z in Singapore, like their counterparts in many other parts of the world, are increasingly embracing digital payments over physical cash. Several factors contribute to this trend:

1. **Convenience**: Digital payment methods such as mobile wallets, contactless cards, and peer-to-peer payment apps offer convenience and speed, allowing Gen Z to make transactions quickly and easily without the need for physical cash.

2. **Tech-savvy Culture**: Gen Z, being the first generation to grow up entirely in the digital age, are comfortable with technology and are early adopters of new digital trends, including digital payment solutions.

3. **COVID-19 Pandemic**: The COVID-19 pandemic accelerated the adoption of digital payments globally, including in Singapore. Concerns about virus transmission through physical cash prompted many individuals to switch to digital alternatives for safety reasons.

4. **Government Initiatives**: The Singaporean government has been actively promoting the adoption of digital payments as part of its Smart Nation initiative. Various incentives, campaigns, and collaborations with industry stakeholders have encouraged the use of digital payment methods among Singaporeans, including Gen Z.

5. **Innovation in Financial Technology**: The fintech sector in Singapore has experienced significant growth in recent years, leading to the development of innovative digital payment solutions tailored to the preferences and needs of younger consumers.

While digital payments are gaining popularity among Gen Z in Singapore, it's essential to note that cash still remains widely used for certain transactions, particularly in traditional settings such as hawker centers, small businesses, and among older generations who may prefer cash for cultural or personal reasons. However, the overall trend points towards a gradual shift towards digital payment methods as the preferred mode of transaction among Gen Z in Singapore.