TLDR: A report by Kearney India and Amazon Pay reveals that 65% of Gen Z professionals in urban India are starting their financial journey with credit cards, driving a significant surge in digital payment volumes and reshaping consumer spending habits.
Gen Z and Millennials are emerging as India’s most financially empowered generations — driving a major behavioral shift in how urban India spends, saves, and pays. According to the “How Urban India Pays 2025” report by Kearney India in collaboration with Amazon Pay, 65% of Gen Z professionals apply for their first credit card as soon as they start earning, signaling a sharp departure from earlier cash-first habits.
Digital payment volumes in urban India surged 35% in FY25, driven by women, young professionals, and small-town consumers embracing smarter, faster, and more rewarding ways to pay. Nearly half of Gen Z and Millennials now prefer credit cards for flexibility and rewards, while 65% of co-branded cardholders choose e-commerce cards for integrated benefits.
“India’s digital payment revolution is accelerating at an unprecedented pace, with retail digital transactions set to cross $7 trillion well before 2030,” says Shashwat Sharma, Partner and Financial Services Lead, Kearney India. “Digital payments is preferred for 90% of online purchases and is rapidly reshaping offline spends too. Our consumer insights reveal that with growing financial independence, 57% of women are actively taking charge of their finances and 80% of women entrepreneurs now prefer to run their businesses cashless. Gen Z and Millennials are redefining credit adoption in India. 65% of respondents applied for their first credit card early in their careers.”
The report underscores how young India’s digital-first mindset is reshaping the nation’s payments landscape—turning credit from a financial milestone into a lifestyle enabler and pushing India closer to its $7 trillion digital economy vision.
