One third of digital payments in India driven by credit cards and EMIs, says survey

“India’s digital payments evolution is reshaping financial possibilities—empowering consumers to spend smarter, plan better, and dream bigger. As UPI and flexible credit options become mainstream, the future belongs to those who leverage these tools responsibly to drive inclusive growth and financial resilience,” said Rajesh Londhe, Co-founder and Head of Payments, Phi Commerce.

At the core of this behavioural shift in payments is UPI, which has become the default payment mode for everyday transactions, according to the report. Its widespread adoption signifies consumers’ preference for speed, ease, and instant settlements, making it the primary choice for retail, food services, and government transactions. “However, beyond daily spending, a notable rise in credit-based digital payments—via credit cards and EMIs—suggests a growing willingness to defer costs and manage cash flow strategically,” the report said.

Consumers today are more open to financing their spending rather than making one-time payments. This is particularly evident in education (10 per cent), healthcare (15 per cent) and auto ancillary (15 per cent), where high-value purchases are increasingly made via EMIs and structured credit options. The reliance on EMI plans for school fees, medical expenses, and large online purchases reflects a shift in financial behaviour—from outright affordability to manageable, phased spending, it said.