Online Banking and Digital Payments Accelerates; New FIS Report Finds

MUMBAI:
The COVID-19 pandemic has accelerated the adoption of digital payments in India, with 68 percent of Indian consumers now using online or mobile banking apps to conduct their financial transactions, according to a new report released today from financial technology leader FIS ® (NYSE: FIS).

The FIS PACE survey surveyed Indian adults in both June 2020 and April 2021 and looks at how the pandemic has affected consumers’ finances. The report found that the pandemic has forced consumers to shift from cash and cheques towards digital payments, including the following key findings:

 About 68 percent of consumers are using mobile payment apps for making payments, while 94 percent of Gen Z consumers own mobile wallets.
 Buy Now, Pay Later (BNPL) apps have gained significant popularity during the pandemic, especially among younger generations. On an average, 32 percent of consumers own a BNPL app, and most often consumers use Amazon or Flipkart’s BNPL option.

Bharat Panchal, Chief Risk Officer, APMEA, FIS said: “The pandemic has led India to a new phase of digital payments adoption. To be successful, it’s vital that the banking sector provides technology-centric strategies which meet the diverse preferences of consumers’ rapidly changing habits, while also driving financial inclusion for underserved communities around the country.”

The FIS PACE report also found that there has been significant surge in financial frauds during the pandemic, with consumers increasingly using online options when making transactions. Consumers have become more vulnerable to cyber fraudsters, with 34 percent reporting financial fraud in the past 12- months. This rises to 41 percent among Gen Y (age group 25-29 years). The financial frauds were mostly through phishing, followed by QR code/ UPI scams, but consumers were also victims of card scams and skimming.