UPI and e-wallets witness significant growth: WATPapers

WATConsult, the globally awarded hybrid digital agency from Dentsu Creative India, has released the latest issue of its monthly WATPapers. Titled ‘Digital Transactions in India’, the report is by WATConsult’s research division, Recogn. The report shares insights on the increase in online businesses and purchases, changes in the process of making payments, and the migration of people from cash to digital transactions.

According to the report, the majority of respondents prefer to use digital payment systems like e-wallets and UPI. Apart from that, they have also used credit cards and net banking to complete transactions. It is pertinent to note here that while 46% of the males prefer using e-wallets, most females like to use UPI to transact. Furthermore, many youngsters in the age group of 18 to 24 years prefer using UPI and e-wallets.

The report further reveals that among the e-wallets app users, Google Pay (38%) tops the chart followed by Amazon Pay (37%), Paytm (36%), and Freecharge (32%). While female users choose to use Google Pay, male users prefer using Amazon Pay, Paytm, and Google Pay. In small metropolitan areas, the users prefer to use JioPay, Google Pay, and WhatsApp to transact.

Users favour e-wallets owing to the need to switch to a digital payment system and reduce cash transactions. These apps are convenient since they are easy to use and access. Additionally, users also get discounts/cashback on using them along with some special benefits from specific retailers as well.

Commenting on the latest issue of WATPapers- Digital transactions in India, Heeru Dingra, CEO, Isobar India group says, “The UPI platform has witnessed a leap in adoption at a phenomenal growth rate as a payments product across the country. There have been many merchants and businesses in the digital as well as the offline ecosystems that have integrated the options of e-wallet apps and UPI for customers’ convenience and ease of transaction. This has positively influenced the country’s mobile wallet market.”

Sahil Shah, managing partner, WATConsult adds, “In the emerging markets, e-wallet apps have garnered much more attention compared to other forms of payment systems. Digital payment adoption is growing, and the onset of the pandemic has created a need for contactless payments in everyday life. The need for digital payments and the rise in the frequency of the usage of e-wallets during the pandemic have been evident. There was a change in the behaviour of consumers during the pandemic which had a direct impact on the retail and e-commerce sectors.”