Digital payments exploding in India, but tech-savvy teens still paying with cash

If there’s one group that knows their way online, it’s Gen Z. And while they may log on for everything from Instagram to college, there’s one area that’s a no go for them: online transactions. A survey conducted by FamPay, a neo bank for teens, showed that 84 per cent of Indian teenagers love to shop online but a majority 67 per cent are stuck paying in cash.

This survey with 1200 teenagers (GenZ) was to shed some light on their payment and spending habits, lifestyle choices and aspirations. The top three things teens are buying online are: food, clothes and accessories.

Cash on delivery
The survey reveals that 84 per cent of Indian’s teens love to shop online, a trend that has accelerated since the lockdown. Despite the Digital India trend, 67 per cent of teens continue to pay in cash and 52 per cent of teens pay through their parent’s debit/credit card, thereby continuing to be outside the digital financial ecosystem.


India’s teens spend money on food, clothes and gadgets in that order. While spending on food is the highest among both boys and girls, 64 per cent of boys spend more on gadgets as compared to 21 per cent of girls. Teen girls, 66 per cent of them prefer to spend more on clothes compared to 49 per cent of boys. Teens have strong preferences when it comes to brands. Apple, Nike, H&M and Netflix emerged as the most popular brands among this cohort in their respective categories.

Low percentage get pocket money
The survey reveals that teens get money on demand from their parents. Nearly 50 per cent of all teens confirmed that they get money when they ask for it. Only 23 per cent receive pocket money and 25 percent said that they typically receive money on their birthdays or from visiting relatives during festivals. Surprisingly, only 4 per cent teens receive money for chores.

When it comes to their social media behaviour, Instagram is the most popular channel with nearly 80 percent of teens spending time on it, followed by YouTube and WhatsApp. Watching content is what 66 percent of teens do most on social platforms, followed by consuming news, and being in touch with friends, in that order.

Today’s teenagers are socially aware and not shy of voicing their opinion. The survey confirms that they are vocal about issues. A majority 55 per cent are passionate about “Made in India”, 40 per cent support the women empowerment agenda, 28 per cent support Black Lives Matter and 19 percent support the LTBTQ cause.

The lockdown has disrupted routines for teens, just like everyone else. 20 per cent teens miss eating out, 11 per cent said they missed going to school, while an overwhelming 50 per cent cite missing their friends the most during this time.