The trend of digital payments has now spread to small towns, significantly reducing cash transactions. According to a report by 'Kearney India' and 'Amazon Pay India,' 65 percent of financial transactions in small towns are now conducted through digital payments. The report highlights that Millennials (aged 25 to 43) and Gen X (aged 44 to 59) are spearheading India's digital payments revolution. Interestingly, Boomers (aged 60 and above) are increasingly using cards and e-wallets more than the younger generations.
The survey, which included over 6,000 consumers and more than 1,000 merchants from 120 cities, revealed the payment methods used for daily transactions. It found that 69 percent of merchants are utilizing digital modes for their transactions. The convenience of digital transactions has contributed to their rising popularity.
Popular Among Youth
The report indicates that 65 percent of transactions in small towns are now digital, compared to 75 percent in big cities. Digital payments are also gaining traction in rural areas. Shashwath Sharma, Partner in Financial Services at Kearney India, noted that the younger generation prefers digital payments for both online and offline transactions.