The latest research by ACI and YouGov finds that digital payments continue to be the payment method of choice for festive season spending, with 41% of consumers choosing it as their preferred payment method, comfortably ahead of cash (26%) and debit and credit card payments (23%). “Concerns over digital payments fraud have decreased, with 24% identifying it as a concern compared to 30% last year. In line with this trend, digital payments are considered the most secure way to pay for 33% of respondents, up from 24% in 2020, and just behind cash-on-delivery (35%),” stated a press release issued by ACI Worldwide.
The total sample size for the study was 1,001 adults and the fieldwork was undertaken between October 12 and October 15, 2021. The survey was carried out online. The figures have been weighted and are representative of all Indian adults (aged 18+) in the following Tier 1 metro areas: Mumbai, Delhi NCR, Chennai, Kolkata, Bangalore and Hyderabad.
“While our research suggests that consumers will continue to seek the convenience of online shopping, they’re also looking forward to complementing it with in-store shopping experiences as pandemic restrictions ease,” said Ankur Saxena, country leader, South Asia, ACI Worldwide. “This highlights how merchants and payment providers will have to account for many different customer journeys, which cross over traditional channels. Omni-channel payments will emerge as a major focus for retailers.”
Here is a look at more findings from the survey.
Payment behaviors and spending patterns
- Digital payments were the preferred payment method for 41% of respondents overall, rising to 50% in the 25-34 age group. The over-45 age group continued to divide their payment preferences between card payments and digital payments almost equally (35% and 33%, respectively).
- Roughly one-fifth (19%) used digital payments for purchases of Rs 10,000 to Rs 50,000 (USD $135-675) this festive season, in line with 21% last year. Only 4% made purchases exceeding Rs 50,000 ($675), the same as last year.
- 57% continue to use digital payments for groceries and essentials, which remains the most common category for digital payment purchases. Nearly half of those surveyed used digital payments for apparel (48%) and electronics (47%), with other popular categories including household appliances (43%) and homewares (41%).
Consumer concerns and industry opportunities for digital payments
- While concerns have dropped across the board, failed transactions continue to remain a top concern for 41% of respondents, followed by data privacy (34%) and poor internet connectivity (30%). 14% have no concerns with digital payments whatsoever.
- 69% feel digital payments offer greater financial transparency (better insights into how, when and what money is spent on) compared to other payment methods. Similarly, 69% think digital payments offer better promotions, incentives, or cashbacks than other payment methods.
