The majority of consumers in India take advantage of digital payments more frequently during the festive season, according to a new study by YouGov and ACI Worldwide.

According to the report, frequent use (2-3 times a week) of digital payments increased from 57 percent last year, while 6 percent of respondents had no intention of using digital payments this holiday season, down from 9 percent ( a). for a year.

The research highlighted that digital payments continued to be the preferred payment method for holiday spending, with 60 percent of consumers using digital payments (including eWallets and UPI) multiple times a week for holiday purchases.

41 percent of consumers chose digital payments as their preferred payment method, ahead of cash (26 percent) and debit and credit card payments (23 percent).

Digital payments were the preferred payment method for 41 percent of respondents overall, rising to 50 percent in the 25-34 age group. People over the age of 45 were roughly divided in terms of their payment preferences between card payments and digital payments almost equally (35 percent and 33 percent, respectively).

19 per cent of respondents used digital payments for purchases of INR 10,000-50,000 this festive season, in line with 21 per cent last year. Only 4 per cent made purchases that exceeded INR 50,000, the same as last year.

57 percent of respondents said they use digital payments to buy groceries and necessities, which remains the most popular category for digital payment purchases.

Nearly half of those surveyed used digital payments for clothing (48 percent) and electronics (47 percent), with other popular categories including home appliances (43 percent) and household items (41 percent).

While concerns about digital payments subsided across the board, failed transactions remained a top concern for 41 percent of respondents, followed by data privacy (34 percent) and poor internet connectivity (30 percent). 14 percent of respondents have no concerns about digital payments at all.

He also highlighted the advantages of such payments as perceived by the respondents. 69 percent feel that digital payments provide greater financial transparency (better insights into how, when and what money is being spent) than other payment methods. Similarly, 69 percent believe digital payments offer better promotions, incentives or cashback than other payment methods.

Concerns about digital payment fraud have declined, with 24 percent considering it a concern compared to 30 percent last year. In line with this trend, digital payments are the safest way to pay for 33 percent of respondents, up from 24 percent in 2020, and cash on delivery is delayed (35 percent).

“It is encouraging to see the growing confidence in digital payments by Indian consumers, which is also supported by the monthly growth in transaction volume, the increased frequency of use among consumers and the use of digital payments for higher value payments. This reinforces the fact that digital payments are becoming an integral part of our lives. daily, as India continues to shine as a global leader in real-time digital payments”

The report added that 70 percent of respondents said that with the increased reliance on online shopping that arose during the pandemic-related restrictions, they now prefer online shopping to in-store shopping. However, 60 percent also said they would look to shop in person if proper precautions – including social distancing – were in place.

“While our research indicates that consumers will continue to seek the convenience of online shopping, they are also looking to complement it with in-store shopping experiences as pandemic restrictions ease,” Saxena continued.

“This highlights how merchants and payment service providers will have to consider the many different customer journeys, which go beyond traditional channels. Multichannel payments will emerge as a major focus for retailers.”

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