A new report revealed that approximately 65 percent of transactions by consumers in small-town India are now digital, while in larger cities, this ratio is around 75 percent. The report, conducted by Kearney India and Amazon Pay India, highlights the leading role of India's millennials (aged 25-43 years) and Gen X (aged 44-59 years) in spearheading the digital payment revolution. Interestingly, Boomers (aged 60 years and above) show higher card and wallet usage than the younger cohorts.
Shashwat Sharma, Partner and Financial Services Lead at Kearney India, stated, "From the widespread adoption of digital payments in both online and offline transactions to the rise of emerging payment methods like BNPL (buy now, pay later), this report provides a detailed look at how India is transforming its payment landscape."
The report is based on a survey covering 120 cities, over 6,000 consumers, and 1,000 merchants. According to the report, UPI, digital wallets, and cards have gained widespread traction as cash transactions dwindle, with digital modes accounting for 69% of merchant transactions.
Vikas Bansal, CEO of Amazon Pay India, highlighted the significant impact of India's digital payment revolution, stating, "India’s digital payment revolution is firing on all cylinders, propelled by consumers and merchants alike. With digital transactions reaching even street vendors and smaller towns, we are at an inflection point."
The report also mentioned that emerging modes like BNPL gained visibility, with 87 percent awareness of the credit-based offering among respondents, driven by convenience and rewards.
Meanwhile, NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), has successfully enabled the acceptance of the Unified Payments Interface (UPI) at Galeries Lafayette’s flagship store in Haussmann, ahead of the Paris Olympics. This follows their successful implementation of UPI for online ticket booking at the Eiffel Tower.
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Inputs from IANS
