A new report from the UPI application superSpends offers a fascinating, data-driven snapshot of how India's youth manages its finances. The inaugural superSpends 2025 edition analyses millions of transactions to map the evolving payment, saving, and credit behaviours of young Indians over the past year.
Gen Z Leads the Digital Payment Charge
The findings highlight a demographic takeover, with a dominant 72 per cent of users being under the age of 30. For this generation, digital payments have moved beyond being a mere convenience to become an integral part of daily life and routine decision-making. The frequency of transactions underscores this shift: approximately 74 per cent of users make more than 50 payments every month, and a significant segment is now conducting over 200 monthly transactions.
This behavioural change is being propelled by factors like instant cashback rewards and the seamless accessibility of financial tools directly within payment apps. Digital payments are no longer occasional acts but are woven into the fabric of everyday consumption.
Decoding the Daily Spending Rhythm
The report uncovers clear urban spending patterns tied to the time of day. In metropolitan areas, payments at groceries and supermarkets see a sharp peak during the morning hours of 6 to 11 am. As the day progresses, evening spending shifts towards restaurants and fast-food outlets. A notable trend is the surge in food delivery orders after midnight, pointing to changing consumption cycles.
Furthermore, consistent fuel payments remain a significant expense category, emphasising the continued importance of personal mobility in urban routines. Despite the high volume, the value of most transactions remains modest, with 76 per cent being under ₹2,000. Groceries and food lead overall spending, while education emerges as the top category for subscription-based payments.
Beyond Metros: Credit and Geographic Expansion
The digital payments wave is firmly spreading across the country. The report notes strong activity in Tier 2 and even Tier 4 towns, indicating deep penetration beyond India's major cities. Another critical shift is visible in credit adoption. The data reveals that 45 per cent of users accessed credit for the very first time through the platform, often opting for secure instruments like fixed deposit-backed cards, which lower the entry barrier.
Commenting on these insights, Prakash Sikaria, Founder and CEO of superSpends, stated, "Young India and specifically Gen Z is setting a new standard for how India interacts with money. Their habits, from micro-spends to responsible credit use and skill-focused subscriptions, are defining the future of finance."
The report solidifies the notion that India's financial landscape is being dynamically rewritten by its younger population, who are embracing digital tools for granular control over their economic lives.
