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Let’s be honest—if there’s one generation that can turn budgeting into a trend and make financial planning look cool on Instagram, it’s Gen Z. Born between the late 90s and early 2010s, these folks are doing things their own way, and that includes how they spend, save, and manage money. They’re not following the same path as their parents. They’re using apps instead of ledgers, scanning QR codes like pros, and choosing "Buy Now, Pay Later" like it’s second nature.
In this blog, we’re diving into everything from who Gen Z really is and how they spend, to what makes them different. Without waiting further, let's get started.
Who Is Gen Z and How Are They Spending in 2025?
Gen Z includes anyone born between 1996 and 2012. They grew up with the internet, smartphones, and social media right from the start. For them, everything from shopping to socializing happens online. When they want to buy something, they usually check social media first. Whether it’s product reviews, brand posts, or influencer suggestions, they trust what they see online more than traditional ads.
They want brands that are honest, sustainable, and relatable. Flashy ads alone won’t work anymore. Gen Z wants to know what a brand stands for. They also like using flexible ways to pay. You can think of something like Apple Pay, UPI, or “buy now, pay later” services. These payment methods are quick and easy, and that’s what Gen Z looks for. If a checkout process is too slow or doesn’t have their payment option, they’re likely to drop the purchase altogether. In fact, nearly two-thirds won’t complete a payment if their preferred method isn’t available.
What Makes Gen Z So Different?
What sets Gen Z apart isn’t just their love for tech. It’s how they use it to shape everything they do. They don’t follow old systems. They question things, they compare, and they expect more—whether it’s from a brand, a job, or a bank. They want speed, convenience, and honesty. And if they don’t get it, they won’t stick around.
What Gen Z Really Uses to Pay
Here's a closer look at the most preferred payment options that Gen Z use on an everyday basis:
1. Debit Cards Are Still Their First Choice
Most Gen Z users choose to pay with debit cards. Around 69% use them daily or weekly. The reason is simple. They want to spend only what they have. Credit cards often come with debt and extra charges, which doesn’t sit well with this generation. Only 39% use credit cards often, which shows they prefer safer, debt-free choices.
2. Digital Wallets and UPI Apps Are Gaining Ground
Gen Z is quick to adopt anything that makes payments faster and easier. That’s why apps like Google Pay, PhonePe, and Paytm are common on their phones. These digital wallets and UPI apps let them pay instantly without carrying cash or cards.
Want to know which UPI apps work best in India? Understanding the top options can help you streamline your payments or set up a business that Gen Z can easily pay at.
3. Buy Now, Pay Later (BNPL) Feels Safer
Now here’s where it gets interesting. You might wonder—if Gen Z avoids credit cards, why are so many using Buy Now, Pay Later services? The answer is balance. They don’t like long-term debt, but they still want payment flexibility.
Apps like LazyPay, Amazon Pay Later, and Cashfree give them just that. There’s no interest most of the time, no big credit checks, and no pressure to pay everything right away. It feels more relaxed.
Almost 70% of Gen Z uses BNPL for shopping under ₹7000. Clothes, phones, small gadgets—it works for the kind of spending they do often. So yes, they’re still careful with money. They just choose tools that give them control without the weight of a credit card bill.
How Gen Z Handles Money with UPI
If you look at how Gen Z manages money today, UPI plays a big role. Most of them don’t carry cash. They scan a QR code, split bills with friends, track spending through apps, and make instant payments without thinking twice. It’s quick, easy, and fits right into their fast-paced lifestyle. Whether it’s buying coffee or paying rent, UPI has become their go-to option.
Want to know how you can use UPI to plan your daily expenses better? Check this out. It’s got simple tips to help you take better control of your spending.
Want Gen Z to Notice You? Here’s What You Need to Do
If you're trying to connect with Gen Z, forget the usual tricks. You need to keep things simple, fast, and genuine. Here's what actually works:
1. Talk Like a Human
Drop the fancy language. Gen Z wants to know exactly what they’re getting. If you’re offering a reward or cashback, say it clearly. No hidden conditions. No small print games. Keep your message clean, short, and easy to follow.
2. Make It Smooth
Every extra step in the payment process is a reason for them to leave. Gen Z expects things to move fast. If your checkout flow has too many taps or asks for too much info, they’ll drop it. Cut the clutter. Keep the journey smooth.
3. Be Where They Are
Billboards won’t cut it. Gen Z scrolls, swipes, and laughs at memes. If your brand isn’t in their feed, it’s out of sight. Use humour. Be relatable. Show them what your brand stands for. They care about values, but they also care about how you say it.
Keep your message honest. Keep the experience simple. And speak their language. That’s how you earn their attention.
Closing Thoughts
Gen Z isn’t just spending money differently, they’re thinking about it in a whole new way. They want speed, clarity, and honesty in every transaction. If brands want to keep up, they’ll need to match that energy. The rules have changed, and Gen Z is setting them.
About the author
Naina Rajgopalan has a thing for numbers and a deep fascination to learn about all things finance. She's been money-wise from a young age and has always shared her knowledge and tips with those around her. Being a part of the content team at Freo, Naina stays updated with the latest of what happens in the banking and fintech industries.
