Three In Five Indians Still Prefer To Pay In Cash

As digital transactions continue to grow, cash remains king. Well, at least that’s what a recent report underscored.

Nearly 56% of Indian consumers prefer to make retail and bill payments in cash, according to a study by Home Credit India, named “The Great Indian Wallet”.

Published in May, the report focused on lower middle-class consumers—or those aged between 18 and 55 years, and with an average monthly income of Rs 33,000. The study shows 45% of such consumers prefer taking loans offline, while 44% prefer borrowing online.

Similarly, about 85% of these consumers prefer offline shopping, even amid the proliferation of e-commerce sites. Consumers, the report said, still value “the sensory engagement and tangible experiences” of shopping offline.

Physical stores have a strong hold over consumers, with 85% of transactions made in clothing, footwear, fashion accessories, mobile phones, and home appliances. For buying groceries and medicines, 86% of consumers trust offline stores.

And that's not all. Nearly 59% of these consumers prefer to dine at restaurants. Additionally, 57% of people prefer the traditional offline way of booking train and bus tickets.

However, trust in digital transactions for retail payments and banking is rising, with 72% of these consumers using the Unified Payments Interface. Consumers from cities like Delhi, Mumbai, Kolkata, Pune, and Chennai have an inclination towards digital payments and loan services, it said.

According to recent reports, daily UPI transactions are likely to reach 1 billion by FY27, accounting for 90% of retail digital payments in India.