Women & Gen Z declare war on cash; surprising trends emerge [see stats]

The latest How Urban India Pays 2025 report by Kearney India and Amazon Pay reveals that beyond a 35% surge in digital payment volumes in FY25, the real transformation lies in who is choosing to go cashless—and why. Women, Gen Z, and first-job millennials are not just adopting digital payments; they are using them as tools of financial independence.

Once seen as a tool for convenience or cashback, digital payment platforms are fast becoming gateways to credit, autonomy, and accountability. The report finds that 57% of urban women now actively manage their own finances, signaling a turning point in financial agency. A staggering 89% of women prefer digital modes for online purchases, while 80% of women entrepreneurs run their businesses entirely cash-free, powered largely by UPI and mobile banking. Unlike earlier trends driven by urban men, today's growth is anchored in financial decision-making by women who are demanding control—not merely convenience.

Gen Z and millennials are rewriting India's relationship with credit. Nearly 65% apply for their first credit card with their first salary, not out of necessity, but to build credit scores and unlock rewards. Half of young digital spenders now prefer credit cards over debit or UPI for larger spends—a marked cultural shift from cash conservatism to strategic credit use. Co-branded e-commerce cards are leading this charge, chosen by 65% of cardholders for integrated rewards across lifestyle and shopping.

What was once a big-city trend has broken geographical barriers. Offline digital payment usage in non-metro cities has climbed to 50% in FY25, nearly parallel to 62% in metros. Cities like Lucknow, Jaipur, Kochi and Bhubaneswar are rapidly transitioning to tap-and-go payments, QR-based UPI counters, and BNPL options. For many first-time digital users in Tier 2 cities, reward visibility and transactional security are replacing the fear of 'invisible money.'

The report notes a significant behavioral shift—87% of consumers now pay utility bills digitally, compared to 83% last year. Digital payments are no longer tied to occasional shopping or festive purchases; they have entered the mundane but essential layers of household management. Recurring payments such as electricity, mobile recharges, DTH, and school fees are now dominated by UPI and auto-debit options, making digital modes the default infrastructure of Indian homes.

Despite rapid growth, the core reason behind loyalty to digital modes remains unchanged: trust. Users consistently cite reliability and transaction safety as the biggest reasons for sticking to their chosen platforms. While rewards and ease drive adoption, confidence in fraud protection and instant reversals is what cements usage. Companies, therefore, face a new challenge—product innovation is no longer enough; personalised safety and financial education will define the next phase of growth.

What this means for India's $7 trillion digital ambition

Shashwat Sharma, Partner at Kearney India, notes that India is on track to cross $7 trillion in retail digital transactions well before 2030. But the report subtly hints at a broader transition — from digital access to digital autonomy. Payments are no longer just transactions; they are statements of control, ambition, and inclusion.

As Vikas Bansal, CEO of Amazon Pay India, adds, "The rise from 48% to 56% in offline digital payments in a year reflects a fundamental shift in behaviour." But beneath those numbers lies a more profound reality: India is not merely going digital; it is going independent.

Highlights:

1. 57% of urban women now manage their own finances.
2. 89% of women exclusively use digital methods for online purchases.
3. 80% of women-led businesses are fully cashless.
4. 69% of affluent women prefer credit cards — breaking the cash-first barrier.
5. Offline digital use jumped from 48% to 56% in one year.
6. Tier-2 and Tier-3 cities have reached 50% digital adoption, close to 62% in metros.
7. Utility bills paid digitally: 87%, up from 83%.