CIO & LEADER-November 2017 (1)
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Insight<br />
FFour out of five respondents (81%) in a recent<br />
survey said security is an important factor while<br />
considering online payments. This is similar across<br />
the board - gender, ages, household income and even<br />
education levels.<br />
The study, conducted by Visa, observed high<br />
inclination amongst Indian consumers (78%) in<br />
favour of adopting newer modes of digital payments,<br />
indicating increased awareness, acceptance<br />
and adoption of digital forms of payments among<br />
Indian consumers.<br />
One of the factors that surfaced as the key driver<br />
of this adoption was the ease of transition to digital<br />
form factors of payments, as stated by 86% of the<br />
respondents. Amongst those who have used lesscash<br />
currently than before, 70% state that the main<br />
reasons to transit away from cash include – convenience,<br />
efficiency and speed of transaction offered<br />
by digital modes.<br />
This survey was aimed at understanding the<br />
pulse of the Indian consumer and their views<br />
towards the transition to a digital economy. The<br />
study indicates that amongst people for whom this<br />
transition was tough:<br />
41% find that merchants they go to only<br />
accept cash<br />
39% are worried about the security of their<br />
transactions.<br />
52% find insufficient modes of payments as a<br />
key barrier.<br />
Visa, the world’s leader in digital payments,<br />
today announced an independent study, examining<br />
the consumer sentiment around digital payments<br />
in India.<br />
The survey also shows that millennials are more<br />
likely to use digital payments for everyday essentials<br />
like shopping at supermarkets, online, department<br />
stores, fast food restaurants, taxis/cabs etc.<br />
than other generations. The study also shows that<br />
the inclination towards embracing digital is higher<br />
amongst those from a higher income household.<br />
Cash vs Digital Payments in India<br />
34%<br />
33%<br />
36%<br />
31%<br />
2016 <strong>2017</strong> 2018<br />
Cash<br />
Digital<br />
39%<br />
25%<br />
Source: Visa<br />
“More and more consumers are becoming digital<br />
natives, expecting a differentiated experience, oriented<br />
towards convenience and practical usability.<br />
IoT, contactless payment technology, enabling simplified,<br />
secure and faster eCommerce experience<br />
are some of the trends defining the next wave of the<br />
future of payments. The study shows that while<br />
consumers are steadily embracing digital payments,<br />
they are also seeking secure payment forms,” says<br />
TR Ramachandran, Group Country Manager, Visa,<br />
India & South Asia.<br />
According to the survey, cash usage continues to<br />
decline marginally from around 33% last year, to<br />
31% currently, and is expected to come down further<br />
to around 25% over next 12 months. On the contrary,<br />
digital payment forms like card usage continues see<br />
uptake, rising from around 34% last year to over<br />
36% currently, and likely to touch 39% in next 12<br />
months. The numbers from the survey indicate a<br />
marginal impact of demonetization.<br />
The research probed over 2000 people across<br />
the Indian Subcontinent. Commissioned by Visa,<br />
the online survey was conducted independently<br />
by YouGov to find out the sentiment of the consumer<br />
adoption of digital payments and user habits<br />
in the region<br />
<strong>November</strong> <strong>2017</strong> | <strong>CIO</strong>&<strong>LEADER</strong><br />
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