Digital payments continue to be the preferred payment method for 39 percent of consumers in India, ahead of debit and credit card payments (26%) and cash (26%), according to a new study conducted during the festive season by YouGov and ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time digital payment software and solutions.
Digital payments, including eWallets and UPI payments, were used by 57 percent of respondents more than twice per week for festive season purchases, up from 43 percent a year ago. Increased digital payment volumes are also being driven by “power users,” with one in three (29%) using digital payments at least once per day, up from 15 percent last year.
“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 & country leader – South Asia, ACI Worldwide. “The pandemic has driven increased usage of ‘touchless’ digital payments — including UPI, which already recorded two billion monthly transactions in October — and contactless cards, which in an offline environment support the hygiene and safety measures being encouraged by the authorities.”
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UPI generated record monthly transactions in October for the seventh consecutive month, with 2.07 billion transactions totaling more than 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.
“While there is overwhelming consensus that ease of use of digital payments is increasing, and merchant acceptance has improved since a year ago, some consumer concerns highlight the challenges that lie ahead for banks and payment providers,” continued Roy. “Forty-four percent 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.”
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