Nearly 76% of Indians now prefer to use IPU (unified payment interface) when making online payments, while more millennials (84%) are now using UPI when shopping online, according to a report.
As the physical, digital and virtual worlds converge, Indians are ready to explore and buy in apps/browsers as well as social media platforms, according to new research from the financial services technology provider FIS.
UPI in August recorded 6.57 billion transactions, amounting to 10.72 trillion rupees.
According to data from National Payments Corporation of India (NPCI), trading volume increased by 85% and value by 67.85% year-on-year (YoY).
Around 72% of respondents said they now see discounts and offers as the main driver of their shopping behavior on social media apps.
While 78% of Indians say they are likely to shop for fashion products such as clothes, shoes and accessories, 70% would shop on social media apps.
About 63% will buy in-app/in-browser gift certificates, 55% will buy insurance and investment products in the next 12 months, according to the report.
“Integrated finance has great potential to transform the customer payment experience offered by banks and financial institutions and open up new avenues of growth for merchant partners,” said Harish PrasadMD, Banking Solutions, India, FIS.
Apart from a hassle-free customer experience, Indians are looking for instant gratification and incentives when shopping online.
“Although Indians are ready to embrace integrated financial services, brands need to ensure transparency and security to earn customer trust,” the report said.
Indians are also keen to embrace the emerging space of the metaverse as they show interest in buying real-world products virtually in the future.
“About 68% of Indians would like to explore shopping in the metaverse and 57% of Indians would prefer to access the metaverse for banking services in the next 12 months,” the results showed.
Men (60%) are more interested in trying virtual socializing, dating, and events in the metaverse than women (48%).