May 12, 2024
2 mins read

UPI Growth Fuels Overspending in India: Experts

The purchasing trend via UPI/QR code is due to the fact that digital transactions now take a jiffy to complete the purchase journey via smartphones….reports Asian Lite News

As India’s digital and less-cash journey gains steam, more and more people are not only purchasing their daily essentials via unified payments interface (UPI) mode of digital transactions but also costly home appliances, high-end gadgets and designer apparels, among other things.

The seamless digital journey via the UPI mode has also resulted in people overspending on stuff they actually may not need at times, experts said on Saturday.

The purchasing trend via UPI/QR code is due to the fact that digital transactions now take a jiffy to complete the purchase journey via smartphones.

According to a recent survey by IIIT Delhi, nearly 74 per cent of people in the country are ‘overspending’ as a result of using UPI and other digital payment methods.

“The convenience and ease of digital transactions through UPI, in comparison to cash, may indeed lead to lower awareness of spending, as transactions are seamless and reduce the tangible feel of money leaving one’s possession,” Prabhu Ram, Head, Industry Intelligence Group at market intelligence firm CMR, told IANS.

Latest data from the National Payments Corporation of India (NPCI) revealed that the number of Unified Payments Interface (UPI) transactions reached 1,330 crore in April. On a year-on-year basis, the UPI transaction count has increased by 50 per cent.

Last year, the UPI transactions increased by almost 60 per cent to reach a record 11,768 crore.

Ramesh Narasimhan, Chief Executive Officer-India, Worldline, said that UPI maintains its position as the uncontested frontrunner, buoyed by substantial expansion in mobile transactions.

“This trend underscores users’ growing confidence and familiarity with smartphone-based payment methods,” Narasimhan added.

The average ticket size (ATS) of UPI transactions has also declined by 8 per cent from Rs 1,648 to Rs 1,515.

According to experts, consumer spending in India is soaring, with people splurging on cars, smartphones, TVs and other items, boosting the country’s economic growth.

However, the trend has also seen people overspending on certain high-priced items, thanks to UPI.

A recent report by Nielsen Media India, on behalf of Amazon India, showed that digital payment methods are on the rise in the country, with 42 per cent of consumers saying they will choose UPI for online festive shopping.

ALSO READ: InterLnkd crowned winner of Start-up Pitch Battle

Previous Story

Modi spreading hatred in society, alleges Priyanka 

Next Story

Ola Founder Takes on Big Tech Bullying

Previous Story

Modi spreading hatred in society, alleges Priyanka 

Next Story

Ola Founder Takes on Big Tech Bullying

Latest from Business

Oracle cuts jobs as AI spending surges

The move follows a substantial reduction in Oracle’s workforce during the company’s latest financial year. Company filings show that its employee count fell by around 21,000, or 13 per cent, during the

India Remittances Surge Over Decade

Digital connectivity has strengthened these links by allowing migrants to share knowledge and expertise remotely while continuing to work and remain economically active overseas…reports Asian Lite News Desk India’s remittance economy has

Apple Bundles TV, Arcade With iCloud+

Apple said the expanded iCloud+ package will roll out in more than 100 countries and regions through the end of September Apple has expanded its technology and subscription ecosystem in India with

India Targets Global Innovation Lead

The Commerce and Industry Minister highlighted opportunities in product design, clinical trials, equipment manufacturing, biotechnology and pharmaceuticals…reports Asian Lite News Desk India can unlock a research and development opportunity worth Rs 12

TCS Opens AI Powerhouse in London

New 4,500-square-foot hub supports digital transformation and forms part of company’s plan to create 5,000 UK jobs….reports Asian Daily News Desk Tata Consultancy Services (TCS) has launched a new AI-native Creative Engineering
Go toTop

Don't Miss

How British crown impacted Indian food in London, Calcutta

Upon Victoria’s death in 1901, her son Edward demanded any

Two ‘nephews’ come closer to ‘uncle’ Nitish

At present, the use of loudspeakers for Azan or the