Between 2016 and 2017, the use of cash declined from 33% to 31%, according to a study conducted by Visa and YouGov. By 2018, it is expected to decrease to 25%. In contrast, card payment in the region as increased from 34% to 36% in the same period and is expected to reach 39% in 2018.
“IoT, contactless payment technology, enabling simplified, secure and faster eCommerce experience are some of the trends defining the next wave of the future of payments,” TR Ramachandran, Group Country Manager, Visa, India and South Asia, said in a statement. “The study shows that while consumers are steadily embracing digital payments, they are also seeking secure payment forms,” he added.
78% of people surveyed declared being likely to embrace new forms of payments. Respondents reported being driven by the ease of transition to digital payment methods. Those who had already began to use less cash were motivated by convenience, efficiency and speed of transaction.
The main barriers to digital payment methods reported were the low level of acceptance by merchants, security worries and insufficient modes of payments. 81% of the respondent declared valuing security more than convenience for online payments, a trend which was similar across all demographics.
The survey, conducted across India, Sri Lanka and Bangladesh, shows that millennials are more likely to use digital payment for everyday essentials. A correlation between the household revenue and an increased likeliness to embrace digital has also been demonstrated.
