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

A new How Urban India Pays 2025 study from Kearney India and Amazon Pay highlights how India’s payment landscape is evolving beyond numbers. While digital payment volumes grew 35% in FY25, the most notable shift lies in the changing profiles of cashless adopters—with women, Gen Z, and first-job millennials leveraging digital tools to redefine financial independence.

Digital payments have transitioned from transactional conveniences to enablers of autonomy and opportunity. The report indicates 57% of urban women now actively oversee their finances—a milestone in financial empowerment. Of these women, 89% use digital payments exclusively for online purchases, while 80% of women-led businesses operate entirely without cash, relying on UPI and mobile banking. This contrasts with earlier male-dominated adoption patterns, reflecting women’s growing demand for financial control.

Younger generations are reshaping credit culture, with 65% applying for their first credit card alongside their first paycheck—not out of need, but to cultivate creditworthiness and unlock benefits. Half of young digital spenders opt for credit cards over debit or UPI for major purchases, signaling a shift from cash caution to strategic credit use. Co-branded e-commerce cards propel this trend, chosen by 65% of cardholders for seamless rewards across shopping categories.

Digital payments now transcend metro boundaries, with offline usage in Tier 2 cities reaching 50% in FY25—nearing metro adoption rates of 62%. Cities including Lucknow, Jaipur, Kochi, and Bhubaneswar are embracing QR-based UPI, contactless payments, and BNPL solutions. New users in smaller cities increasingly prioritize transparent rewards and transaction security over anxieties about digital finance.

Behavioral shifts now anchor digital payments in daily life: 87% of consumers pay utility bills digitally, up from 83% last year. Routine expenses—electricity, mobile recharges, subscriptions, and school fees—increasingly flow through UPI and automated systems, cementing digital methods as household essentials.

Trust remains the cornerstone of user loyalty. While rewards incentivize adoption, retention hinges on transaction reliability and security measures like fraud protection. Companies now face a dual mandate—innovating products while delivering personalized financial safeguards and education.

Implications for India’s digital economy

Shashwat Sharma, Partner at Kearney India, emphasizes India’s trajectory toward exceeding $7 trillion in retail digital transactions before 2030. However, the report suggests a deeper evolution—from access to autonomy—where payments symbolize economic agency and inclusion.

Vikas Bansal, CEO of Amazon Pay India, adds, “Offline digital payments rising from 48% to 56% in one year reflects behavioral transformation.” The data reveals more than digitization; it underscores India’s journey toward financial self-determination.

Key findings:

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%.