Gen Z’s credit habits are changing: Bigger purchases, longer EMIs and 3X more quick-commerce spending

Gen Z is changing the way it spends and uses credit, with convenience emerging as a key factor in its payment and borrowing choices, according to data released by Kiwi on International Youth Day.

The Credit-on-UPI platform said its internal data from June-July 2026, covering 25,000 users, shows that Gen Z spends around 20% more on rental and education payments than older generations.

This suggests that younger consumers are increasingly using credit for essential and recurring expenses.

The preference for convenience is also visible in grocery spending.

Gen Z customers spend 3X more on quick commerce, which accounts for 2.6% of their wallet share, compared with 0.85% for traditional retailers such as D-Mart. Consumers aged 30 and above, meanwhile, allocate a larger share of their grocery spending to physical retail stores and local shops.

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The data also shows that Gen Z uses credit cards more selectively. Instead of making frequent, smaller transactions, younger consumers show a preference for larger-ticket purchases.

They also appear less focused on maximising cashback across multiple cards and more interested in convenience. Kiwi said it has observed a 10% higher share of wallet among Gen Z users compared with millennials, pointing to stronger engagement with a payment model that combines UPI with access to credit.

Siddharth Mehta, Co-Founder & COO, Kiwi, said, “Gen Z is not necessarily using credit more frequently; they are using it differently.”

He said convenience is playing a much bigger role in how younger consumers make payment and credit decisions. “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," he noted.

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Gen Z chooses longer EMI tenures for bigger purchases

While EMI adoption is lower among Gen Z, those who choose EMIs tend to make higher-value purchases and opt for longer repayment tenures.

For Kiwi users, longer-tenure financing can carry interest charges. However, the data shows that younger consumers are willing to choose longer repayment periods to keep their monthly outgo manageable, even if this can lead to a higher overall financing cost.

The trends point to a shift in how younger Indians approach credit. Convenience, flexibility and keeping monthly payments affordable are emerging as important factors in their spending and financing decisions.