, India

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%).
 

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Retail Asia in your inbox

Customers take center stage: Using innovation to grow your business

This exclusive Retail Asia virtual round table on 28 May will guide retailers on how to meet their customer's needs and sustain their business during the pandemic.

How NTUC FairPrice's consumer centric mindset became its golden goose

The "FairPrice on Wheels" community initiative brings daily essentials to mature estates with higher concentration of low-income seniors.

US-based Sam’s Club launches first Huizhou store

The store offers sampling activities, free eye and hearing tests, and wine tasting.

Hongkong Land launches shopping mall in Chongqing

It features a seven-storey botanical garden and sports and cultural interactive offerings.

Revenge spending boosts South Korea’s luxury retail

Both women’s and men’s clothing stores saw a rise in sales this year.

How South Korea’s supermarkets lure in neighborhood customers

Customers have been shopping more through local shops and online platforms.

Shinsegae’s Emart offers ‘e-money’ to customers

Shoppers can save up to 3,000 points by finding products sold cheaper elsewhere.

South Korea’s department stores scramble for better products

The rapid rise of online shopping has weakened their status amongst SMEs.

Alibaba's Taobao Deals to roll out more direct-from-producer products

The app saw 100 million users during its first year.

JD’s Seven Fresh launches first Shenzhen store

Customers can get imported produce as well as local fruits from Guangdong.