Gen Z loyalty comes with a price tag – more than half will switch brands for a better deal Gen Z may think of themselves as loyal customers, but a new PayPal survey shows their loyalty has a price.

While 70% of young people say they’re loyal to brands, more than half (55%) admit they’d switch for a cheaper or better deal.

Rewards now matter more than brand loyalty itself for 51% of respondents, and 63% actively search for deals before buying anything.

The findings are clear: Gen Z loyalty isn’t given, it’s earned. And it can disappear the moment a better offer comes along.

Gen Z may think of themselves as loyal customers, but a new PayPal survey shows their loyalty has a price. (Image: Jam Press/Paypal)

To put this to the test, PayPal took over London’s Southbank with a 10-meter climbing wall, challenging the public to prove their loyalty for a share of 1,000,000 PayPal+ loyalty points. The data tells a consistent story.

Although 73% of Gen Z say they usually stay loyal to brands, only 9% say they’d never switch — meaning for the vast majority, loyalty is conditional.

The findings suggest this is the new reality: brands must continuously earn Gen Z’s loyalty rather than take it for granted.

And the shift doesn’t stop at shopping. When it comes to real loyalty, it’s not brands or habits that come out on top – it’s people.

More than a quarter (27%) say they are most loyal to their parents, followed by partners (16%) and then friends (8%). In contrast, just 3% say they are most loyal to their job, and only 2% point to everyday habits like coffee or takeaway orders.

Around 39% say they demonstrate loyalty by supporting causes they care about, while 36% say keeping a friend’s secret is a key sign compared to just 19% who link loyalty to repeat purchases.

The data suggests that while emotional loyalty remains strong, particularly in close relationships, brand loyalty is increasingly transactional.

Two-thirds (66%) say they are more likely to stay loyal to brands that reward them, reinforcing the idea that modern consumers expect something in return for their commitment. Millennials, by contrast, appear more consistent, with 80% describing themselves as loyal compared to 72% of Gen Z.

PayPal’s London stunt – launched to celebrate its new PayPal+ loyalty programme – formed the backdrop to the study, highlighting how younger generations are rewriting the rules on loyalty.

While 70% of young people say they’re loyal to brands, more than half (55%) admit they’d switch for a cheaper or better deal. (Image: Jam Press/Paypal)

Ultimately, the findings suggest that for Gen Z, loyalty hasn’t disappeared; it’s just been redefined.

And in today’s deal-driven world, it seems even the most loyal customers still have their price.

Dave Jones, Head of Consumer at PayPal UK, said: “We created PayPal+ as a way of rewarding our customers for their loyalty, and have already seen millions of people enroll in the programme.

“We wanted to bring to life the product benefits in a fun way via an IRL event, putting loyalty to the test and giving away a share of 1million PayPal+ Points to punters who could take part.

“With the launch of PayPal+ and the ‘PayPal+ Peak’ challenge, we’re celebrating the evolution of what loyalty means by rewarding customers for their everyday choices and proving that loyalty should always be a two-way street.”