UPI, the preferred method of making digital payments

A survey by Kearney India and Amazon Pay India shows that 90% of the respondents prefer digital payments for online purchases, and nearly 50% use them in physical stores. For online purchases, 53% of consumers prefer UPI, while 30% choose digital wallets and cards. Offline, cash remains predominant.

When making daily purchases in urban India, people now prefer to use digital payments more often than cash. The survey “How Urban India Pays” by Kearney India and Amazon Pay India reveals a significant shift towards digital payments among urban Indians. Surveying over 6,000 consumers and 1,000 merchants across 120 cities, it shows that 90% of respondents prefer digital payments for online purchases, and nearly 50% extend this preference to physical stores. Among merchants, 69% of transactions are now digital.

The survey highlights that 65% of transactions in small towns are digital, compared to approximately 75% in larger cities. Millennials (25-43 years) and Gen X (44-59 years) are leading this trend, but Boomers (60+) are also adopting digital payments rapidly. Both men and women use digital payments for over 70% of their transactions, driven by convenience, speed, efficiency, and rewards, which over 60% of respondents cited as motivators.

UPI is the preferred mode of digital payment for 53% of consumers for online purchases, while 30% prefer digital wallets and cards. Offline, cash remains predominant, but 25% of consumers favor UPI, and 20% use digital wallets and cards. This data indicates a broad and growing acceptance of digital payment methods across various demographics in urban India.

Vikas Bansal, CEO, Amazon Pay India stated, “India’s digital payment revolution is firing on all cylinders, propelled by consumers and merchants alike. With digital transactions penetrating even street vendors and smaller towns, we are at an inflection point.”