October 27, 2021 2:07:26 pm
Indian shoppers may have been using digital payment methods, including united payments interface (UPI) and e-Wallets, more frequently amid the festival season but like every year, failed transactions continue to be a major cause of concern, according to a study conducted by YouGov and ACI Worldwide, which is a real-time digital payment software and solution.
About 60 percent of consumers used digital payments (including eWallets and UPI) multiple times per week for festive season purchases, revealed the study. Frequent usage (2-3 times per week) has grown from 57 percent last year, while only 6 percent of respondents have no intention of using digital payments this festive season, dropping from 9 percent a year ago.
The latest research by ACI and YouGov finds that digital payments continue to dominate the payment space, with 41 percent of consumers choosing it as their preferred payment method, comfortably ahead of cash (26 percent) and debit and credit card payments (23 percent).
The research also notes that the concerns over digital payments fraud have decreased, with 24 percent identifying it as a concern compared to 30 percent last year. In line with this trend, digital payments are considered the most secure way to pay for 33 percent of respondents, up from 24 percent in 2020, and just behind cash-on-delivery (35 percent).
Ankur Saxena, country leader, South Asia, ACI Worldwide, in a statement said, “It is encouraging to see the heightened trust in digital payments by Indian consumers, which is also corroborated by the month-on-month growth in transaction volumes, increased frequency of usage among consumers and use of digital payments for higher value payments. This reinforces the fact that digital payments are becoming an even more integral part of our daily lives, as India continues to shine as a global leader in real-time, digital payments.”
Online shopping drastically increased amid the coronavirus-induced restrictions, adds the study. Nearly 70 percent of respondents noted they now prefer online to in-store shopping. However, 60 percent also said they look forward to in-person shopping if adequate precautions – including social distancing – are in place.
At least 19 percent of Indian shoppers used digital payments for purchases of Rs 10,000 to Rs 50,000 this festive season, in line with 21 percent last year. And only 4 percent made purchases exceeding Rs 50,000, the same as last year.
Nearly half of those surveyed used digital payments for apparel (48percent) and electronics (47percent), with other popular categories including household appliances (43percent), groceries and essentials (57 percent), and homewares (41percent).
Further, digital payments were the preferred payment method for 41 percent of respondents overall, rising to 50 percent in the 25 to 34 age group. The over 45 age group continued to divide their payment preferences between card payments and digital payments almost equally (35 percent and 33 percent, respectively).
But failed transactions continue to remain a top concern for 41 percent of respondents, followed by data privacy (34 percent) and poor internet connectivity (30 percent). While 69 percent feel digital payments offer greater financial transparency (better insights into how, when, and what money is spent on) compared to other payment methods, a similar percentage think digital payments offer better promotions, incentives, or cashback compared to other payment methods.
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