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Digital payments preferred payment method for 39% Indians
14 Nov '20
3 min read
Pic: Shutterstock
Digital payments continue to be the preferred payment method for 39 per cent of Indian consumers ahead of debit and credit card payments (26 per cent) and cash (26 per cent), according to a new study conducted during the festive season by YouGov and Italy-based ACI Worldwide (ACIW), a global provider of real-time digital payment software and solutions.
Digital payments, including e-Wallets and Unified Payments Interface (UPI) payments, were used by 57 per cent of respondents more than twice per week for festive season purchases, up from 43 per cent a year ago.
Increased digital payment volumes are also being driven by ‘power users’, with one in three using digital payments at least once per day, up from 15 per cent last year, the study found.
“It is clear from this year’s data that digital payments are becoming more entrenched in the everyday lives of consumers, and for many, these convenient and secure payment types are undoubtedly the preferred choice,” said Kaushik Roy, vice president and country leader, South Asia, of ACI Worldwide, in a press release.
UPI generated record monthly transactions in October for the seventh consecutive month, with 2.07 billion transactions totaling more than ₹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.
“Forty four per cent cite failed transactions as a top concern when it comes to digital payments. Continued successful growth of digital payment volumes—and consumer confidence—will require providers of digital payments infrastructure to ensure they are operating stable, high-capacity systems,” Roy said.
Digital payments were the preferred payment method for 47 per cent in the 25-34 age group. The over-45 age group preferred card payments and digital payments almost equally—33 per cent and 34 per cent respectively. Only 9 per cent avoid digital payments completely during festive season, marginally less than a year ago (10 per cent).
Failed transactions are a top concern for 44 per cent of respondents, up from 36 per cent last year. Thirty seven per cent cite data privacy as a top concern (40 per cent last year), while 13 per cent have no concerns whatsoever.
The most common fraud-related concern is fake apps or websites that are part of a scam, cited by 42 per cent. Forty per cent also have concerns around fraudulent ‘Know Your Customer’ (KYC) updates and fake UPI payment links.
Although digital payments are the preferred payment method, 45 per cent consider cash and payment on delivery as the most secure, ahead of digital (24 per cent), cards (20 per cent) and internet banking (11 per cent).
A third (35 per cent) is now more inclined to use contactless digital payments because of guidance from authorities, slightly up from April 2020 (32 per cent in April 2020).
Digital payments, including e-Wallets and Unified Payments Interface (UPI) payments, were used by 57 per cent of respondents more than twice per week for festive season purchases, up from 43 per cent a year ago.
Increased digital payment volumes are also being driven by ‘power users’, with one in three using digital payments at least once per day, up from 15 per cent last year, the study found.
“It is clear from this year’s data that digital payments are becoming more entrenched in the everyday lives of consumers, and for many, these convenient and secure payment types are undoubtedly the preferred choice,” said Kaushik Roy, vice president and country leader, South Asia, of ACI Worldwide, in a press release.
UPI generated record monthly transactions in October for the seventh consecutive month, with 2.07 billion transactions totaling more than ₹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.
“Forty four per cent cite failed transactions as a top concern when it comes to digital payments. Continued successful growth of digital payment volumes—and consumer confidence—will require providers of digital payments infrastructure to ensure they are operating stable, high-capacity systems,” Roy said.
Digital payments were the preferred payment method for 47 per cent in the 25-34 age group. The over-45 age group preferred card payments and digital payments almost equally—33 per cent and 34 per cent respectively. Only 9 per cent avoid digital payments completely during festive season, marginally less than a year ago (10 per cent).
Failed transactions are a top concern for 44 per cent of respondents, up from 36 per cent last year. Thirty seven per cent cite data privacy as a top concern (40 per cent last year), while 13 per cent have no concerns whatsoever.
The most common fraud-related concern is fake apps or websites that are part of a scam, cited by 42 per cent. Forty per cent also have concerns around fraudulent ‘Know Your Customer’ (KYC) updates and fake UPI payment links.
Although digital payments are the preferred payment method, 45 per cent consider cash and payment on delivery as the most secure, ahead of digital (24 per cent), cards (20 per cent) and internet banking (11 per cent).
A third (35 per cent) is now more inclined to use contactless digital payments because of guidance from authorities, slightly up from April 2020 (32 per cent in April 2020).
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