The proliferation of new and innovative payment systems like the Unified Payments Interface (UPI), among others, has strengthened the digital payment ecosystem
The use of digital payments such as mobile wallets has increased significantly in India. According to the latest Experian Global Insights Report, digital payments have now overtaken credit cards with 91% of Indians preferring online payment methods for financial transactions.
While the shift to online transactions is encouraging, it has also highlighted the need for stringent digital security measures. 45% of Indian consumers who were surveyed have expressed concerns regarding fraud and identity theft. Furthermore, 80% of consumers expect businesses to take necessary precautions to protect their information from fraudsters.
Experian surveyed 6,000 consumers and 2,000 businesses across 20 countries, including India, the United Kingdom, the United States, and other APAC markets on information related to consumer and business economic outlooks, financial well-being, online behaviour and more. This report is the latest study in a series exploring the significant shifts in consumer digital preferences and business strategy over the past seven years.
The study further revealed that ‘Buy Now Pay Later’ or BNPL services are gaining traction in India. Over the last six months, the use of BNPL services increased by around 18% around the globe, while in India, the increase was 21%. BNPL has great consumer acceptance and facilitates financial inclusion. Given that businesses must follow fair practices and conform to regulatory guidelines.
Neeraj Dhawan, Country Manager, Experian India, says: “India is moving towards building a strong digital ecosystem where consumers can use digital solutions and services to manage their finances effectively. Businesses need to consider meeting the ever-changing demands of consumers while embracing technology and innovation at scale. A friction-free and secure digital experience will go a long way towards gaining consumer trust and loyalty. As an industry leader, Experian is committed to providing business solutions that are secure, easily scalable to meet emerging needs, enabling businesses to make fast and efficient decisions supporting their own business goals.”
Key highlights for India from Experian’s Global Insights Report:
- India is witnessing an increase in the use of AI-powered chatbots and virtual assistants. 34% of consumers trust AI more than humans.
- For digital transactions, 68% of consumers are willing to share their personal data like contact information, address, phone number, and so on.
- 58% of consumers highlighted protecting financial data, like bank account details, credit card details and more as a top priority.
- 60% of Indian consumers are concerned about fake/phishing emails, messages, or phone scams. However, 30% of consumers said that they have been victims of online identity theft.
- 29% of Indian consumers have fallen victim to their credit card/payment details being stolen.
- Security (92%) and privacy (92%) continue to be important factors in online transactions.
The Experian Global Insights Report can be downloaded here: https://www.experian.in/global-insights-report-april-2022