The geographic base of forex demand is expanding, with tier-II and tier-III cities contributing 53 per cent, while tier-I cities, including metros, accounted for 47 per cent, Thomas Cook (India) said in its India Forex Report 2026, released on Wednesday.
It added that younger travellers aged between 18 and 24 years are emerging as the fastest adopters of digital-first forex channels. Overall, 25 per cent of customers now transact digitally.
“The findings highlight a significant shift in consumer behaviour – from the rapid rise of digital-first and self-serve forex journeys to growing participation from Tier 2 and Tier 3 markets and increasing preference for destination-specific currencies,” Deepesh Verma, chief business officer, foreign exchange, at Thomas Cook (India), said, noting that the report offered insights into Indian consumers’ foreign exchange buying, carrying and spending habits across leisure travel, overseas education and corporate travel.
“We are also seeing strong momentum across app-led transactions, WhatsApp journeys and quick-commerce-enabled forex fulfilment, particularly among younger travellers,” Verma said.
The move towards digital-first avenues, according to the report, has been supported by a preference for shorter planning cycles, as Indian travellers increasingly buy forex closer to their departure dates. Buying cycles have shortened from 10-14 days to just four to seven days before travel.
The company said the report, based on Thomas Cook’s forex transaction data from April 2025 to March 2026, captures emerging trends in consumer demographics, travel corridors, purchase journeys, payment preferences and overseas spending.
The report also pointed to a shift away from the dominant US dollar towards destination-specific currencies such as the Thai baht, UAE dirham, Singapore dollar, Malaysian ringgit and Vietnamese dong. “Southeast Asian currencies are also gaining traction as short-haul leisure travel to the region grows,” the report said.
While cash remains dominant among holiday travellers, with a 75 per cent share of transactions, forex cards account for 39 per cent of the total load value. This, the report said, indicates growing confidence in forex cards for planned overseas spending.
“The growing adoption of digital forex and card-based solutions clearly reflects a broader preference for greater control, convenience, and confidence in managing international spending,” Amarjit Walia, senior vice-president, account management, at Mastercard South Asia, said.
