Credit Card and UPI
According to a report, in the year 2024, about one-third of all domestic payment transactions were credit-based. That is, these payments were made through credit cards or interest-containing EMIs. According to a report by Digital Payment Fintech PHI Commerce, UPI has emerged as a transformational product in digital payment, 65 per cent of the total transactions.
UPI’s more use in small and medium value
The report states that UPI dominates the transactions of small and medium value. Credit cards and EMIs are being used rapidly for large amounts of shopping. Sectors like education and healthcare are also seen strong growth in adopting digital credits.
Credit use more in seasonal trends
The report said that festive shopping, school admisition and seasonal trends increase the credit use. This indicates that consumers depend on short term credits for high spend periods. This report is based on the analysis of transactions data received from more than 20,000 traders across the country.
Changes are coming in people’s financial behavior
PHI Commerce co-founder Rajesh Londhe said that as UPI and flexible credit options are becoming common, the future is those who benefit from these devices responsibly to promote inclusive growth and financial flexibility. Today, consumers are more open to fund their expenses rather than paying outright. This is particularly clear in education (10 percent), healthcare (15 percent) and auto auxiliary (15 percent), where high-value purchases are rapidly done through EMI and structured credit options. It states that school fees, medical expenses and dependence on EMI schemes for large online shopping reflects changes in financial behavior.
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