India's consumers prefer digital payments
UPI transactions hit a record-breaking $51.79b in October.
Digital payments emerged as the top payment method for 39% of consumers in India, ahead of debit and credit card payments (26%) and cash (26%), according to a study by YouGov and ACI Worldwide.
Digital payments, including eWallets and Unified Payment Interface (UPI) payments, were used by 57% of respondents, more than twice per week for festive season purchases, rising from 43% a year ago.
A higher digital payment volumes were also being driven by “power users,” with one in three (29%) using digital payments at least once per day, nearly doubling from 15% last year.
“The pandemic has driven increased usage of ‘touchless’ digital payments — including UPI, which already recorded two billion monthly transactions in October — and contactless cards,” said Kaushik Roy, ACI Worldwide's vice president & country leader in South Asia.
UPI generated record monthly transactions in October for the seventh consecutive month, with 2.07 billion transactions totaling more than $51.79b (Rs 3.86 lakh crore) in value.
"Overall, transactions on the platform have increased nearly two-fold in the past year, with monthly transactions having crossed one billion for the first time in October 2019," ther report stated.
Only nine percent avoid digital payments completely during festive season, marginally less than a year ago (10%).
At the same time, more consumers were more worried over failed transactions with 44% citing it as a top concern, compared to 36% last year. Data privacy is a top concern for 37%, whilst 13% have no concerns whatsoever.
The most common fraud-related concern is fake apps or websites that are part of a scam, cited by 42%. Forty percent also have concerns around fraudulent KYC (Know Your Customer) updates and fake UPI payment links.
Although digital payments are the preferred payment method, 45% consider cash and payment on delivery as the most secure, ahead of digital (24%), cards (20%), and internet banking (11%).
Meanwhile, fewer consumers are concerned about internet connectivity for completing digital transactions compared to last year (32% down from 44%), and fewer are concerned about merchant acceptance infrastructure (15% down from 23%).