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Spending money for necessities has always been common, and occasional overspending was once considered normal. However, this approach is changing rapidly with the rise of Gen Z. A recent study by fintech app Super.money sheds light on how India’s Gen Z manages daily expenses in a more structured and strategic manner.
The study analyzed UPI transactions, digital payments, small-ticket purchases, and credit usage across the country to understand the financial behavior of young users. The findings reveal that Gen Z is adopting online services much faster than previous generations, with a strong preference for digital payments. Notably, 72 percent of digital payment users are under the age of 28.
Contrary to the popular belief that Gen Z is careless with money, the report highlights that they are highly disciplined and goal-oriented in their spending. Cashback offers and value-driven transactions play a key role, as young users actively look for benefits in every payment they make.
Digital payments have become second nature to Gen Z. About 74 percent of users make more than 50 digital transactions per month, with some crossing even 200 transactions. QR code-based payments dominate their spending habits, whether it is booking a cab, paying bills, or handling everyday expenses.
Although Gen Z relies heavily on UPI, most of their transactions are of smaller value. Around 76 percent of payments do not exceed ₹2,000. A significant share of spending goes toward groceries at 26.16 percent, followed by food expenses at 23.71 percent. At the same time, the report notes a growing willingness among Gen Z to invest in self-improvement, with increased spending on course subscriptions and skill development.
Gen Z’s spending patterns also vary by time of day. Payments for groceries are mostly made between 6 a.m. and 11 a.m., while food-related transactions peak between 6 p.m. and 11 p.m. The study also observes a rise in late-night food orders, indicating a shift in lifestyle habits.
Major metro cities record the highest transaction volumes, particularly during morning hours for grocery purchases. While metros dominate in transaction value, smaller towns are catching up fast. In Tier-2 to Tier-4 cities, 41 percent of users actively rely on UPI payments, reflecting the deep penetration of digital finance.
Weekend spending is emerging as a growing trend in India. The highest number of transactions is recorded on Friday evenings between 7 p.m. and 8 p.m., suggesting a gradual shift toward planned leisure spending.
The study also highlights a thoughtful change in how Gen Z approaches credit. Nearly 45 percent of Gen Z users are new to credit, yet many prefer FD-backed secured credit cards. This indicates a cautious, informed, and disciplined entry into the credit ecosystem.
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