Now Reading: Gen Z spends more on quick commerce, longer EMIs, Kiwi data shows
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Gen Z spends more on quick commerce, longer EMIs, Kiwi data shows
Gen Z spends more on quick commerce, longer EMIs, Kiwi data shows
Gen Z consumers prioritise convenience, spending three times more on quick commerce platforms than older generations and choosing longer repayment tenures for large purchases, according to a Kiwi report based on internal…
Gen Z consumers prioritise convenience, spending three times more on quick commerce platforms than older generations and choosing longer repayment tenures for large purchases, according to a Kiwi report based on internal data from 25,000 users between June and July 2024.
The credit-on-UPI platform found Gen Z allocates 2.6% of its wallet share to quick commerce, against 0.85% for traditional retailers like D-Mart. Older consumers still prefer physical stores and local shops. Kiwi co-founder Siddharth Mehta said younger users use credit differently, not more often, opting for larger-ticket purchases via credit cards while treating convenience as more important than maximising cashback rewards.
Gen Z spends 20% more on rental and education payments than older cohorts, the report said. Among users who choose EMIs, they tend to pick longer repayment periods to keep monthly outflows manageable, even when that means higher total interest costs. Kiwi has issued over 2 lakh RuPay credit cards since launch.
Indian Opinion Analysis
Gen Z, roughly those born after 1996, now form India's largest demographic cohort. The Reserve Bank of India's 2023 Financial Inclusion Index noted that younger Indians are adopting digital credit faster than any previous generation. Kiwi's data of 25,000 users is a narrow sample of credit-on-UPI adopters, but the pattern, preference for quick commerce over kirana stores, longer EMIs on large purchases, less reward-chasing, matches broader shifts seen in TransUnion CIBIL's 2024 millennial and Gen Z credit report. The trade-off: longer repayment tenures keep monthly payments low but raise total interest costs, a point the government's proposed Digital India Act may address through new fintech disclosure norms. The next watchpoint is the RBI's December 2024 financial stability report, which will show whether rising unsecured personal loans to young borrowers are affecting asset quality.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
