For Indians heading abroad, the biggest worry isn’t waiting in visa lines or dealing with flight delays. It’s the hidden foreign exchange charges that quietly eat into their travel budgets. A new Passport & Paisa: India Travel Money Report 2026 by Wise shows that managing money overseas has now become the top source of stress for international travellers.
Outbound travel is still on the rise, with 78% of Indians planning to spend more abroad this year, helped by the Budget 2026 cut in Tax Collected at Source (TCS) to 2%. But while travellers carefully compare flight tickets and hotel deals, most overlook the fine print of exchange rates, card fees, and transaction markups—leading to unexpected expenses that can make trips costlier than planned.
This lack of transparency hits a price-sensitive demographic hard. The study, which surveyed over 1,000 international travellers across India, notes that nearly half of the respondents maintain a strict budget of under ₹1 lakh per person per trip. Within this bracket, hidden exchange rate markups and non-transparent pricing structures frequently disrupt financial planning.
Cash Dependence
Despite India's rapid adoption of instant digital payments at home, a sharp contrast exists in how citizens transact abroad. Traditional cash remains the single most popular payment method, with 38% of travellers still buying physical foreign currency notes before departure.
Where Indians Spend Abroad?
• Southeast Asia (Led by Thailand & Bali): 34% share
• Europe (Driven by Gen X): 18% share
• Australia & New Zealand (Driven by Gen X): 17% share
• Middle East (Driven by Millennials): 16% share
• Japan & South Korea (Driven by Gen Z): 13% share
Interestingly, transaction behavior shifts with age and experience. Gen Z is currently the most cash-dependent cohort, whereas Gen X represents the only demographic where international card usage (31%) has officially overtaken cash (25%). Meanwhile, multi-currency digital accounts represent just 9% of the market share across all age brackets.
Beyond hidden costs, payment reliability is another major friction point. Travellers ranked global acceptability as the single most critical factor when choosing a travel card, prioritizing transaction success over lifestyle perks like airport lounge access or complimentary eSIMs.
"Indian travellers are becoming more global, but the way they spend abroad is still catching up," said Taneia Bhardwaj, South Asia Expansion Lead at Wise. "People care deeply about their travel budgets, but often have very little visibility into the exchange rate or markup applied when they pay overseas. A traveller can spend days comparing flights and hotels, but lose money quietly at the point of payment because the forex cost is hidden inside the rate. The mid-market rate is the real exchange rate, the one you see on Google. What you see before you spend should be what leaves your account."
Holiday Spends
The destinations where these financial habits will play out this season are already established. Southeast Asia continues to hold the largest market share at 34%, with Thailand, Bali, and Singapore remaining perennial favorites. However, new corridors are opening up; Gen Z is showing a distinct preference for Japan and South Korea due to cultural influences, while millennials maintain strong ties to the Middle East.
For alternative financial platforms, the challenge lies in convincing Indian consumers to transition away from physical cash and legacy credit cards. The domestic market is heavily accustomed to zero-fee digital banking, meaning international fintech solutions will need to demonstrate clear transaction transparency and high acceptance rates to win over skeptical travellers.
