65 pc transactions now digital in small-town India, Gen X leads the charge

New Delhi:  About 65 per cent of transactions by consumers in small-town India are now digital, while in larger cities this ratio was around 75 per cent, a new report showed on Tuesday.

According to the report by Kearney India and Amazon Pay India, the digital payment revolution is being spearheaded by India’s millennials (aged 25-43 years) and Gen X (aged 44-59 years). Boomers (60 years and above) have higher card and wallet usage than the younger cohorts.

“From the widespread adoption of digital payments in both online and offline transactions to the rise of emerging payment methods like BNPL (buy now, pay later), this report provides a detailed look at how India is transforming its payment landscape,” said Shashwat Sharma, Partner, Financial Services Lead, Kearney India.

The report is based on a survey spanning 120 cities, over 6,000 consumers and 1,000 merchants.

According to the report, UPI, digital wallets, and cards gain widespread traction as cash transactions dwindle, with digital modes making up 69 per cent of merchant transactions.

“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,” said Vikas Bansal, CEO, Amazon Pay India.

Moreover, the report mentioned that emerging modes like BNPL gained visibility as convenience, and rewards propelled India’s digital payment transformation, with 87 per cent awareness of the credit-based offering among respondents.


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