A new study has found that cash usage in India continues to decline from around 33% in 2016, to 31% in 2017.
The study was conducted by Visa in collaboration with YouGov and examined the consumer sentiment around digital payments in the country. It was observed that 78% of people surveyed are likely to embrace new forms of payments.
One of the factors that surfaced as the key driver of this adoption was the ease of transition to digital form factors of payments, as stated by 86% of the respondents.
Amongst those who have used less-cash currently than before, 70% state that the main reasons to transit away from cash include convenience, efficiency and speed of transaction offered by digital modes.
The study indicates that 41% find that merchants they go to only accept cash, while 39% are worried about the security of their transactions. Further, 52% find insufficient modes of payments as a key barrier.
Over 81% of consumers value security more than convenience when it comes to making payments online, a streak which is similar across gender, ages, household income and education levels.
The survey was conducted across India, Sri Lanka, and Bangladesh and shows that millennials are more likely to use digital payments for everyday essentials like shopping at supermarkets, online, department stores, fast food restaurants, and taxis.
The study also shows that the inclination towards embracing digital is higher amongst those from a higher income household. According to the survey, cash usage is expected to come down further to around 25% over the next 12 months.
On the contrary, digital payment forms like card usage continues see uptake, rising from around 34% in 2016 to over 36% in 2017, and likely to touch 39% in a year.