How is Gen Z changing the way India spends and saves?

India’s digital economy is undergoing a generational transformation, with young Indians reshaping how the country spends, saves, and accesses credit. Super Money, a youth-focused UPI and fintech platform backed by the Flipkart Group, has released its first annual consumer behaviour study, superSpends 2025, analysing millions of transactions to reveal how Gen Z is driving this change.

How is Gen Z making payments a daily habit?

The report shows that 72 percent of Super Money users are under 30, making them the primary drivers of India’s digital payment growth. For this demographic, payments are no longer just routine, they are strategic decisions aligned with personal financial goals. Cashback has become a way of life, with each transaction viewed as both a payment and an earning opportunity.

When are young Indians spending most?

Daily transactions have become part of a clear rhythm. Morning grocery runs between 6 and 11am and evening dining from 6 to 11pm are the most common times for payments. Fast-food orders even peak post-midnight, reflecting evolving lifestyle habits. Nearly 74 percent of users make over 50 payments a month, and a growing segment crosses 200 monthly payments.

What are young Indians spending on?

Micro-spends dominate, with essential categories such as groceries (26.16 percent) and food & beverages (23.71 percent) leading the charge. About 76 percent of all transactions are under Rs 2,000, highlighting the trend of real-time budgeting. Subscriptions, particularly for education, are also on the rise, indicating a focus on upskilling among young users.

How are small cities adopting digital payments?

Digital payments are no longer limited to metropolitan areas. Tier 2 and Tier 4 cities now account for over 41 percent of Super Money users.

Cities like Kanyakumari record nearly 1,750 daily UPI transactions, while Tinsukia in Assam logs close to 700. Kerala leads in household-level UPI usage, and the Eastern region is the fastest-growing market for digital payments.

How is Gen Z approaching credit?

A notable shift is seen in credit usage. 45 percent of Super Money users are first-time borrowers, many of whom prefer secured FD-backed cards. This reflects a cautious yet credit-confident mindset. For young Indians, credit on UPI is not seen as borrowing but as a tool for seamless financial decision-making.

Prakash Sikaria, Founder and CEO of Super Money, explained that this generation is digital-first, money-conscious, and intentional about every financial choice. From micro-spends to responsible credit and skill-focused subscriptions, Gen Z ensures that every transaction contributes to progress.

The report underscores that India’s financial future is being shaped by a generation that spends smartly, saves strategically, and uses credit responsibly—one digital transaction at a time.