New data indicates a significant evolution in how Gen Z approaches spending and credit, with convenience emerging as a primary driver for their financial decisions. A study by Credit-on-UPI platform Kiwi, analyzing internal data from June-July 2026 across 25,000 users, highlights several distinct trends among younger consumers.
Convenience Drives Spending Choices
Gen Z consumers demonstrate a marked preference for convenience, particularly in everyday transactions. The data shows they spend approximately 20% more on rental and education payments compared to older demographics, suggesting a growing reliance on credit for essential and recurring expenses.
This preference extends notably to grocery shopping. Gen Z allocates 2.6% of their wallet share to quick commerce platforms, a three-fold increase compared to the 0.85% spent at traditional retailers like D-Mart. In contrast, consumers aged 30 and above continue to favor physical retail stores and local shops for their grocery needs.
Selective Credit Card Use and Longer EMIs
Kiwi's findings also reveal that Gen Z utilizes credit cards more selectively. Rather than making frequent, smaller transactions, younger consumers tend to reserve credit for larger-ticket purchases. Their focus appears to be less on maximizing cashback across multiple cards and more on the ease and flexibility of payments.
Siddharth Mehta, Co-Founder & COO of Kiwi, noted, "Gen Z is not necessarily using credit more frequently; they are using it differently. From choosing quick commerce for everyday purchases to using credit for larger expenses, the focus is increasingly on ease and flexibility rather than simply maximising rewards."
While overall EMI adoption may be lower among Gen Z, those who do opt for EMIs tend to finance higher-value purchases and choose longer repayment tenures. Despite the potential for higher overall financing costs associated with longer periods, the data suggests younger consumers prioritize manageable monthly outgoings.
These trends collectively point to a clear shift in how younger Indians manage their finances, prioritizing convenience, flexibility, and affordability in their spending and borrowing decisions.