Digital payment forms like card usage have been rising from around 34% last year to over 36% currently, and it is likely to touch 39% in the next one year, according to a study conducted by Visa.
The world leader in digital payments, Visa, in association with YouGov, has conducted the study on the consumer sentiment around digital payments in India.
The study found that around 78% of consumers are in favour of adopting newer modes of digital payments, indicating increased awareness, acceptance and adoption of digital forms of payments among Indian consumers.
The survey was aimed at understanding the pulse of Indian consumers and their views towards the transition to a digital economy.
One of the factors that surfaced as the key driver of this adoption was the ease of transition to digital form factors of payments, as stated by 86% of the respondents. Amongst those who have used less-cash currently than before, 70% state that the main reasons to transit away from cash include â€“ convenience, efficiency and speed of transaction offered by digital modes.
The survey, which was conducted across three countries- India, Sri Lanka and Bangladesh also shows that millennials are more likely to use digital payments for everyday essentials like shopping at supermarkets, online, department stores, taxis or cabs, among others, than other generations.
R Ramachandran, Group Country Manager, Visa, India & South Asia, said, "More and more consumers are becoming digital natives, expecting a differentiated experience, oriented towards convenience and practical usability. IoT, contactless payment technology, enabling simplified, secure and faster ecommerce experience are some of the trends defining the next wave of the future of payments. The study shows that while consumers are steadily embracing digital payments, they are also seeking secure payment forms."
According to the survey, cash usage continues to decline marginally from around 33% last year, to 31% currently, and is expected to come down further to around 25% over next 12 months.