Youth wants UPI for daily transactions but credit card dominates bigger purchases due to interest-free facility: Survey

The survey found that 70 per cent of young consumers use UPI for daily small expenses, and 81 per cent prefer UPI for in-person transactions. The biggest reason for this preference is its widespread acceptance, with 85 per cent agreeing that UPI is accepted at more places than credit cards.

However, many users are also concerned about the immediate deduction of funds from their savings, with 74 per cent disliking this aspect of UPI.

It said "This study explores how India's youth perceive financial loss, their frustrations with current payment systems, and their expectations from digital transactions.".

This survey by Kiwi, a credit-on-UPI platform, and Unomer, a digital consumer insights firm, highlighted how India's youth prefer different payment methods for various transactions.

While UPI is the dominant mode for small payments, credit cards continue to attract young consumers for big-ticket purchases. The survey found that 81 per cent consider the interest-free credit period the biggest advantage of credit cards. This allows users to manage their expenses better without immediate financial strain.

Additionally, young consumers are highly focused on rewards and discounts while making payments. The survey revealed that 77 per cent of shoppers' research rewards and prices before making a purchase, and 56 per cent choose a payment mode based on the best available discount.

However, there is frustration among consumers regarding missed rewards and a lack of instant cashback benefits. They prefer instant and guaranteed rewards rather than uncertain or delayed incentives.

The study also indicates a rising demand for credit-on-UPI, as consumers seek the combined benefits of liquidity and convenience. With many young shoppers actively looking for the best prices and payment offers, a system that provides credit without affecting savings instantly could become increasingly popular in the future.

Overall, the survey highlighted that while UPI remains the most preferred payment method for everyday transactions, credit cards continue to be important for their flexibility and rewards. As consumer expectations evolve, digital payment systems may need to offer more integrated solutions that combine the best of both worlds. (ANI)