A new survey reveals that digital payments have caused a major drop in cash transactions among Indian consumers since the pandemic began.
The 2023 DigiPay CuES Survey by market research firm Hansa Research found 58% of respondents saying they reduced cash spending, especially older consumers above 35 years.
Buy now, pay later gains popularity
The survey also showed the growing popularity of “buy now, pay later” (BNPL) financing options. About 31% consumers claimed to have used BNPL services in the past year.
UPI apps preferred for convenient payments
According to the survey, mobile payment apps are preferred for their ease of use and instant settlements. Top digital transactions through such apps were bill payments, peer-to-peer transfers, and online shopping.
The recommendation levels for payment apps also rose significantly from 34 to 46 on the Net Promoter Score (NPS) over the past year. Improved perceptions of trust and safety contributed to this rise.
Security and rewards drive app preference
With multiple payment apps installed, brands compete fiercely for user retention. Key factors for preferring an app were security, offers/rewards, smooth transactions, limits, and ease of use.
Banking apps score high on service quality
While Paytm, Google Pay and PhonePe had high awareness, Axis Mobile App ranked first with an NPS of 59, followed by ICICI iMobile Pay and BHIM. Banking apps edged out UPI apps in customer experience and service quality.
Survey methodology
The Hansa Research survey was based on over 3000 responses from payment app users across age groups, cities, and genders. It measured 12 major payment brands on metrics like NPS to rank them on customer loyalty and experience.
The proprietary survey provides insights into the digital payments landscape and influencers of brand preference. The findings will help payment firms enhance services and user satisfaction.
