Digital Payment Usage on the Rise in Smaller Indian Cities
A recent survey report has found that more than 40% of consumers in tier 3 to 6 cities in India are using digital payment options on a daily basis. The report titled “The State of Digital Payments in India” published by Chase India, reveals key trends in digital payment adoption across rural and semi-urban regions of the country.
The survey covered over 2,000 respondents including consumers and merchants across 16 districts in 8 states. It discovered that beyond just metropolitan areas, digital modes of transaction such as UPI, wallet payments and debit/credit cards are being used frequently even in smaller cities and towns. A sizable 45% of consumers from tier 3-6 locations claimed to use digital payment once every two days showcasing the growing comfort with these contactless options.
While awareness levels were found to be high among consumers, the report highlighted lack of knowledge as a major roadblock for merchant adoption. Close to half of merchants who don't accept digital payments reported not knowing about such services. Infrastructure challenges around internet connectivity and KYC completion difficulties were other prominent issues faced on the merchant side.
Transaction volumes and values via digital modes also varied significantly depending on the type and location of merchants. The findings offer valuable insights to payment service providers on what interventions are needed to further propagate cashless transactions across India both for consumers and businesses. With consistent effort, the goal of achieving financial inclusion in rural pockets through accessible digital platforms seems increasingly within reach.
