With the increasing popularity of Unified Payments Interface (UPI) and flexible credit options, the future of digital payments is in the hands of those who use these devices responsibly to increase inclusive growth and economic flexibility. According to a recent report, about one-third of the total digital payments of the country in 2024 will be credits-based, ie these payments will be made through credit cards or interest-based EMIs.
UPI dominance in digital payment
According to a report by Digital Payment Fintech Company Fee Commerce, UPI has emerged as a transformative tool in digital payment, 65% of the total transactions. This report is based on the analysis of transactions of more than 20,000 traders across the country. UPI is particularly effective in small and medium-value transactions, while the use of credit cards and EMIs for large prices is increasing rapidly.
Increased use of digital debt in education and health sectors
The report states that the use of digital loans in areas like education and healthcare has increased considerably. The use of EMI and credit cards for high price purchase in these areas is increasing rapidly. For example, the dependence on EMI schemes for school fees, medical expenditure and large online shopping is increasing, reflecting people’s changing financial practices.
Use of loan for festivals and seasonal expenses
According to the report, the use of credit during festive shopping, school walks and seasonal trends increases significantly. This suggests that consumers depend on short -term loans during a period of high expenditure. In particular, the use of EMI and structured loan options for high value purchases is increasing rapidly in areas such as education (10%), healthcare (15%) and automotive accessories (15%).
Financial flexibility and inclusive development
“As the use of UPI and flexible credit options increases, the future belongs to those who use these devices responsibly to increase inclusive growth and financial flexibility. Today, consumers are more open to meet their expenses than to pay a lump sum amount,” said Rajesh Londe, the co-founder of Fee Commerce. He said that customers now prefer to make big purchases through EMI, which reflects the new trend in financial transactions.
Combination of UPI and Credit
The report shows that UPI dominates small and medium transactions, while credit cards and EMIs play a leading role in large transactions. The combination of both provides customers more flexible and convenient payment options. This trend is particularly clear in online shopping, education and health services.
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