Digital payments in India have seen mass adoption in usage especially due to the affordable smartphones and the proliferation of internet and connectivity.
A new analysis on digital payments by video streaming platform ZEE5 in its 5th edition ZEE5 Intelligence Monitor, stated that tier II markets are emerging as the hotbed for digital payments in India and the reasons for the inclination being ease of use (73%) and instant transactions (63%).
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It also added that nearly a third, 29%, of users state the freedom from carrying cash or exact change as a vital benefit of digital payments. This is particularly applicable in rural parts of India, where the penetration of ATMs and the circulation of currency notes and coins is relatively lower than in metros.
The report said that digital payments are gaining prominence over traditional financial systems with 63% of debit card users preferring mobile wallets and UPI. 57% of users feel secure using mobile wallets/UPI. 50% of users feel progressive and tech-savvy while using mobile wallet/UPI.
63% of the people surveyed mentioned that the top reason to avail digital payments is ‘ease of use’, followed by 56% saying ‘cashback offers’ and 51% of them considering ‘faster transaction’ as a reason to use these apps.
The top three categories of spending on mobile wallets/UPI apps, according to the report, were mobile bills (50%) followed by online shopping (40%) and utility bills (42%).
The report added that 64% of women surveyed prefer mobile wallets/UPI over debit cards for all payments.
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Meanwhile, the rise of digital payments is not just limited to India now. Prime Minister Narendra Modi and his Singapore counterpart Lee Hsien Loong on Tuesday witnessed the launch of cross-border connectivity between UPI and PayNow via videoconferencing.
The new linkage will allow transfer of funds between India and Singapore in a swift and cost-effective way just by using a phone number.
The UPI-PayNow Linkage will allow hassle-free real-time direct transfer of money between India’s UPI and Singapore’s leading payments platform PayNow. According to the RBI data, Singapore is among the top countries sending remittances to India, after the US, United Arab Emirates and the UK.
