Young Indians Spend More On Travel, Cinema And Digital Services: Report

Young Indians are spending on travel, entertainment, beauty and digital services, while smaller cities are emerging as important markets for consumer spending, according to the superSpends 2.0 report.

Titled The Pulse Of Young India’s Money Moves, the report has analysed a subtle shift in spending patterns, lifestyle choices and financial behaviour among young consumers.

Travel was among the strongest discretionary spending categories on UPI during the first half of 2026. Tier 2 and Tier 3 cities such as Madurai, Faridabad and Surat recorded average spending growth of more than two times.

The report has also found that cinema retained its place as a popular out-of-home entertainment option. Movie ticket spending through UPI fell in February before recovering to nearly twice those levels by June.

Spending On Beauty Products

Spending on beauty and cosmetics through UPI stayed steady during the first half of 2026, with May recording the highest spending levels.

Mumbai led the metro markets, with beauty spending growing 86 per cent relative to user growth. Pointing to higher demand outside major metropolitan markets, Vellore recorded more than two times growth in beauty-related spending.

Digital Platforms Shape Relationships

UPI spending on dating and matrimonial platforms peaked in January. It fell by nearly 40 per cent in February before reaching its highest level of the year in June.

Thiruvananthapuram recorded more than five times the growth in UPI spending on matrimonial services, hinting towards the rising role of digital platforms in relationship and marriage-related decisions.

Cafe Spending Spreads Beyond Metros

Bengaluru and Hyderabad recorded strong growth in cafe-related spending earlier in the year. Smaller cities, however, recorded the highest increase in average spending per transaction.

Kottayam emerged as one of the fastest-growing markets in the category. Allahabad recorded a 31 per cent rise in spending relative to user growth.

UPI-Linked Credit Gains Ground

The report also highlighted the use of credit cards for UPI payments. Credit card issuance through partner banks on the platform has grown three times over the past year, with more than 75 per cent of the cards being used for UPI transactions. The report has also noted growth in secured credit card issuance in July 2026. These RuPay cards are backed by fixed deposits and can be used for UPI payments.