The Rise of Credit in Digital Transactions

In 2024, a significant shift towards credit-based payments was observed in India, with one in three digital transactions involving credit cards or EMIs. This trend highlights a growing preference for short-term financing and phased spending among consumers.

UPI Leads the Way

Unified Payments Interface (UPI) continues to dominate the digital payment landscape, accounting for 65% of all transactions. Notably, 75% of recurring utility and government payments have transitioned to UPI autopay, simplifying the process for millions.

Sector-wise Adoption of Credit

The "How India Pays" report by Phi Commerce sheds light on the increasing adoption of credit across various sectors. Education, healthcare, and auto ancillaries are leading the charge, with EMI-based payments making up a significant portion of transactions in these areas.

Changing Consumer Behavior

Consumers are increasingly opting to defer high-value expenses, spreading them over time. This shift is particularly evident during school admission periods, medical emergencies, and festive shopping seasons, reflecting a broader change in spending habits.

The Convenience of UPI Autopay

Before the advent of UPI autopay, setting up standing instructions for recurring payments was a cumbersome process. Today, it offers a seamless solution, further driving the adoption of digital payments in India.