Indians rapidly adopt digital payment routes amid covid-19 crisis
The covid-19 pandemic has expedited the shift towards digital payments, increased digital channel adoption, spurred consumer interest in savings and safer investments in India, as per a report by Capgemini Research Institute. Indians are increasingly adopting digital payment methods, even those in the older age groups, according to the report.
India is currently at the top in usage of digital payments and will be seen in the next six months, said the report. Almost 80% of the older consumers in the country in the age group of 56-60 years will show the highest usage of digital payment channels in the next six months. This was followed by the age group of 36-45 years at 83%. The global average for increase in digital payment channels in the next six months in both the age groups is less than 50%.
“In the next six-to-nine months, one in five (21%) consumers are expected to make significant use of chatbots, which are comparable to frequent use of bank branches. Insurance will witness a similar hike in the adoption of online solutions. Insurance agents will continue to be important touchpoints for consumers, while digital channel adoption is expected to grow robustly,” said Sudhir Pai, chief technology and innovation officer, global financial services, Capgemini, told Mint.
The study highlights that the usage of digital payments among Indian consumers (across age groups) in the current scenario was the highest at 75%, followed by China (63%) and Italy (49%). The global average was at 45%. Also, the usage of digital payments among Indian consumers will be highest (78%) in the next six months, followed by China (63%) and Italy (50%). The global average on increase in usage of digital payments was at 46%.
The study also showed that 40% of the Indian consumers used voice assistants and chatbots pre-covid-19 as one of the preferred digital touchpoints for banking, and this was the highest among the countries surveyed in insurance segment as well.
“Nearly two third of consumers will be focused on boosting savings (globally) over the next six-nine months. The increased appetite of savings is likely to persist post the pandemic. While nearly 50% of the customers focused on savings before the crisis, nearly 63% say they will focus on boosting savings in the near future,” said Pai. The study found that 85% of the Indian consumers prefer to save more in the next six-nine months as compared to 80% in the current period and 72% pre-covid 19.