Global payment solutions company Visa today said there is a high inclination among Indian consumers to embrace new forms of payments, according to a study.
The study conducted in collaboration with YouGov, examining the consumer sentiment around digital payments in the country, observed that 78 per cent of people surveyed are likely to embrace new forms of payments. “IoT, contactless payment technology, enabling simplified, secure and faster eCommerce experience are some of the trends defining the next wave of the future of payments,” TR Ramachandran, Group Country Manager, Visa, India and South Asia, said in a statement.
“The study shows that while consumers are steadily embracing digital payments, they are also seeking secure payment forms,” he added. One of the factors that surfaced as the key driver of this adoption was the ease of transition to digital form factors of payments, as stated by 86 per cent of the respondents.
Amongst those who have used less-cash currently than before, 70 per cent state that the main reasons to transit away from cash include convenience, efficiency and speed of transaction offered by digital modes, the statement said.
This survey was aimed at understanding the pulse of the Indian consumer and their views towards the transition to a digital economy. The study indicates that 41 per cent find that merchants they go to only accept cash, while 39 per cent are worried about the security of their transactions. Further, 52 per cent find insufficient modes of payments as a key barrier.
Significantly, over 81 per cent of consumers value security more than convenience when it comes to making payments online, it said, adding this is similar across gender, ages, household income and education levels. The survey, which was conducted across three countries, India, Sri Lanka, and Bangladesh also shows that millennials are more likely to use digital payments for everyday essentials like shopping at supermarkets, online, department stores, fast food restaurants, and taxis.
The study also shows that the inclination towards embracing digital is higher amongst those from a higher income household. According to the survey, cash usage continues to decline marginally from around 33 per cent last year, to 31 per cent currently, and is expected to come down further to around 25 per cent over the next 12 months.
On the contrary, digital payment forms like card usage continues see uptake, rising from around 34 per cent last year to over 36 per cent currently, and likely to touch 39 per cent in a year.