The way Indians approach credit is changing—and at the forefront of this shift are Millennials and Gen Z. Unlike previous generations, who largely saw credit as a tool for emergencies or big-ticket purchases, younger consumers view credit as an everyday enabler. From UPI-linked credit cards to BNPL (Buy Now, Pay Later) and digital-first lenders, their choices are reshaping India’s credit landscape.
At Kiwi, we believe understanding these shifts is key to building the credit-first India of tomorrow.
Digital-First, Always
Millennials and Gen Z are digital natives. For them:
- UPI-linked credit cards feel natural—why swipe when you can scan a QR?
- Consumers are embracing BNPL as a convenient way to spread out payments.
- Mobile apps are the first choice for managing spending, credit limits, and bill payments.
Unlike older generations, this cohort prioritises speed, convenience, and app-based control over traditional banking interactions.
Everyday Spending, Not Just Big Purchases
For earlier generations, credit cards were often reserved for travel or emergencies. Millennials and Gen Z, however, are comfortable using credit for:
- Food delivery and coffee runs.
- Online shopping and subscriptions
- Utility bills, transport, and even education expenses.
This shift means credit is becoming part of daily life, not just an occasional backup.
Rewards and Experiences Drive Choices
This generation is value-conscious. They actively compare cards and credit products for:
- Cashback and reward points.
- Discounts on lifestyle categories like food, travel, and fashion.
- Access to experiences (concerts, events, memberships).
For them, a credit product isn’t just about borrowing—it’s about enhancing lifestyle.
Building Credit Early
With rising awareness, Millennials and Gen Z see credit as a way to build financial credibility:
- They are more open to starting early with low-limit credit cards.
- Responsible repayment is seen as a pathway to better loans in the future (home, car, or business).
- Many are using credit to consciously grow their credit scores in their 20s.
This is a sharp contrast to older generations, who often engaged with credit much later in life.
Democratizing Access: Tier-2 and Tier-3 Youth
It’s not just metros—youth in Tier-2 and Tier-3 cities are driving the next wave of adoption:
- Unlike traditional credit cards that have limited use in tier 2 and tier 3 cities due to the lack of POS machines, credit on UPI allows users to access and use credit seamlessly—even at small merchants who accept UPI payments.
- Digital KYC and app-based onboarding make it easier for them to get started.
- The appetite for credit among small-town youth is fueled by aspirations and rising disposable incomes.
Kiwi’s Role in This Transformation
At Kiwi, we’re enabling this generational shift by:
- Allowing Millennials and Gen Z to use credit cards via UPI, combining flexibility and rewards.
- Designing credit products that are digital-first, transparent, and lifestyle-friendly.
- Helping young Indians build healthy credit habits for long-term financial empowerment.
Final Word
Millennials and Gen Z are rewriting the rules of credit usage in India. They’re not just borrowing—they’re leveraging credit to enhance their lifestyle, build credibility, and embrace convenience. As this transformation unfolds, Kiwi is proud to stand alongside them, shaping the future of credit for a new generation.
