Older users in India appear to have taken quicker to digital transactions when compared to young users, as per a report by PACE-FIS. According to the data, older users made 63 extra digital payments in financial year 2016–2017, as compared to 46 payments in financial year 2015–2016.
Users seem to favor credit cards for aspirational purchase and necessities over mobile banking, the study revealed. This is in spite of the fact that over 42% of people in India do not have a credit card. When it came to travel, utility bills, and online shopping, more users in India favored to pay with their credit card as in comparison to the mobile banking. For utility bills, 36% favored to pay with credit cards as compared to 34% who paid through mobile; for online shopping, it was 40% vs 37% and for travel, it was 37% vs 34%. Only in the segment of movie tickets, users in India prefer employing their smartphone over cards. For entertainment and movies, 36% favored to buy tickets, make bookings, or buy food employing their mobile, in comparison to 30% employing their cards.
One more highlight of the report was that a number of users are shifting to financial management apps. With almost 56% employing such apps to give bills on time, 51% utilized such apps to keep an eye on their investment. While an additional 48% utilized the app to maximize savings and plan their budget.
The report also claimed that for users in India, attitude towards credit cards was to either have several cards or avoid it. “Only 18% of users use the credit card only utilized by their main banker. The other 37% utilize credit cards subjected by all. While the majority of people, almost 42%, do not employ credit cards at all,” claimed the report.
An additional banking characteristic was that older users were more probable to take time for physical visits at the branch than young users. Although the number has dropped from what it used to be a few years back, 53% of older users prefer visiting at the branch.