A new survey conducted by YouGov and ACI Worldwide has found digital payments dominating the payment space in India this festival season.
The study surveyed 1,025 adults. Of those polled, 43% used digital payment methods at least 2-3 times per week in the festival period. Around 15% of the respondents used such payment methods once or more daily.
Besides, 32% of the respondents did not use cash for making festival season purchases.
Around 36% of the respondents made peer-to-peer (P2P) payments for purchases below INR1,000 ($14.11), while 37% opted for the same for settling high-value purchases.
Furthermore, 42% of the surveyed people selected digital payments as the preferred payment option, much ahead of card payments (29%) and cash (27%).
Digital payments were observed to be more popular among younger consumers.
During the festival season, 77% of millennials used digital payments, followed by Gen Z (72%) and Gen X (69%). The figure was significantly less among Baby Boomers (45%).
ACI Worldwide vice president and country leader of South Asia Kaushik Roy said: “Digital payments, including UPI and other eWallets, are increasingly the payment method of choice across a wide spectrum of consumers in India.
“While there is still a perception that UPI, for example, is primarily for the peer-to-peer channel, this study shows that significant inroads are being made in the merchant payments channel.
“With monthly transactions on the UPI platform nearing one billion, and credit and debit card usage at the POS experiencing double-digit annual growth, digital and card payments will continue to make inroads into the cash economy.”