Summary of this article
Gen Z shows rising UPI activity across daily routines.
Micro payments dominate spending patterns through the year.
Young users adopt small credit limits for routine transactions.
Indian Gen Z users recorded sharp shifts in how they paid, saved and borrowed using Unified Payments Interface (UPI) throughout 2025, according to the superSpends 2025 report, published by super.money, a UPI and credit-led fintech platform. The patterns show how young users of the Unified Payments Interface UPI are reshaping everyday payments through frequent transactions, small-ticket spends and steady use across smaller cities.
Gen Z sits at the centre of these shifts. About 72 per cent of the respondents are below 30. Nearly 74 per cent make more than 50 payments a month, while the rest make about 200 payments per month. The pattern shows that UPI has now become a part of the routine transaction ritual of the Gen Z, rather than being limited to occasional needs.
Peak Transaction Hours
The report highlighted that peak transaction hours are during the day. The metro cities recorded the highest activity between 6 am and 11 am, primarily related to grocery and supermarket purchases. The second peak occurs between 6 pm and 11 pm, primarily driven by restaurant and fast-food purchases. A smaller peak between midnight and 6 am is contributed mostly by the food delivery orders.
Weekday Evenings Overtake Weekends
Fridays, between 7 pm and 8 pm, recorded the largest number of average transactions for the week. More payments have been recorded on weekday evenings, especially for food delivery, dining, and pharmacy expenses, than on weekends. Fuel transactions peaked on Saturday afternoons. The report stated that daily routines, rather than weekend plans, are driving discretionary spending.
A Micro-Spend Economy Takes Shape
Small-value payments dominate the overall payments ecosystem. Around 76 per cent of all transactions are below Rs 2000. Essentials top the chart with groceries accounting for 26.16 per cent of spending, followed by food and beverages with 23.71 per cent. These numbers are in line with the growing trend of quick-commerce and the penchant for frequent but low-value buys.
Subscription behaviour demonstrated a split in spending between entertainment and education. While the number of subscriptions for entertainment and OTT platforms seems to be on the rise, the total value of subscriptions is still highest from education-related content, signifying continued spending on upskilling.
Smaller Towns Display Growing Digital Activity
Tier 1 cities accounted for 39.82 per cent of users, while Tier 2 stood at 21.13 per cent, and Tier 4 at around 20 per cent. Certain towns showed remarkably high consumption. Kanyakumari averaged about 1,750 transactions a day, and Tinsukia, Assam, recorded about 700, reflecting deeper digital adoption outside large cities.
Regional differences are also visible. Kerala recorded the highest household frequency of UPI use. The other southern states noted higher spending on groceries and fuel. The eastern region showed the fastest growth in daily spending. The northern and western regions reported an increase in evening payments at restaurants and bakeries between 6 pm and 11 pm.
Credit Behaviour of Gen Z
Young users are adopting credit through cautious products. Credit behaviour indicates early adoption. About 45 per cent of the users are first-time borrowers. Many opt for fixed deposit-backed secured credit cards that provide defined limits and a controlled entry into borrowing. The report also noted that young users tend to treat UPI-linked credit as a convenience tool for small purchases rather than as a traditional form of credit.
