India making rapid strides in bridging digital payments divide: Mastercard

By: |
August 10, 2020 1:54 PM

In the current environment there has been significant growth in adoption of contactless payments, both globally and in India.

digital payments, Mastercard, mastercard digital payments poll, contactless payments, Bengaluru, Delhi NCRThe poll revealed that Indian consumers show an increased awareness and positive shift in preferences towards contactless payments.

India is making rapid strides in bridging the digital payments divide, Bengaluru leads in contactless transactions, and penetration of contactless transactions is the highest in the lowest ticket size, reveals a recent digital payments poll conducted by Mastercard in India.

In the current environment, in fact, there has been significant growth in adoption of contactless payments, both globally and in India. Consumers are aware that contactless technology and digital payments can ease some of the tension by reducing a measure of daily risk when we pay. This technology also empowers some of the most financially vulnerable with a safe and secure way to make and receive payments.

According to Mastercard data, there is a 19% increase in the actual contactless cards issued in Q1 2020 over Q4 2019. Currently, the top 5 cities in contactless transactions are Bengaluru at 16%, Delhi and NCR at 12%, Chennai at 7% and Mumbai at 6%. The South region dominates the contactless ecosystem with maximum number of contactless transactions seen there. Bengaluru has by far the highest number of contactless transactions, more than twice the next city which is Hyderabad.

Interestingly penetration of contactless transactions is the highest in the lowest ticket size. Below $10 seems to be the sweet spot for contactless transactions in India and this trend bodes well for mass adoption. India is making rapid strides in bridging the digital payments divide. Penetration of contactless transactions is being driven by the top 4 categories that includes food stores, restaurants, fuel and drug stores dominating the contactless ecosystem. Food stores, restaurants and bars and gas stations are the only category with 1 million + transactions in each month of Q1 2020.

The poll revealed that Indian consumers show an increased awareness and positive shift in preferences towards contactless payments:

# Over 54% of the respondents know how to use a contactless card on a PoS machine.

# 53% of the respondents know that consumers don’t get charged multiple times if the contactless card is tapped more than once. However, 30% did not know this highlighting the need for more awareness on the safety of contactless payments.

# 74% of the respondents, a high number, said that they will continue to make purchases digitally or via contactless mode in the coming times

# 51% of the respondents know that contactless card remains in the hand of the customer while making a transaction.

# 49% of the voters know that a POS machine with a WIFI symbol will allow them to use a contactless card to make a payment.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1National Pension System has not ensured coverage of all eligible employees, CAG audit finds
2How to avoid the trap in becoming a part of a cyber heist
3More than 55% borrowers keen to approach lenders for loan restructuring: Survey