Consumer Behaviour Shifts: From Cash Reduction to ‘Buy Now, Pay Later’ Trends, Unveiled in Latest Survey
India, November 08th, 2023: Hansa Research’s 2023 DigiPay CuES Survey revealed interesting insights into the dynamics of mobile payment platforms. According to this year’s study, Axis Mobile App has emerged as the undisputed leader, boasting a Net Promoter Score (NPS) of 59, with ICICI Bank’s iMobile Pay and BHIM following closely behind. Paytm, Google Pay, and PhonePe, reflected the highest Consumer awareness, and the highest usage across surveyed respondents.
The study also revealed Axis Mobile App and ICICI Bank’s iMobile Pay reigning supreme in experience, over other UPI apps with differentiated performance especially on robust customer support and an extensive array of services and features, enhancing the digital transaction experience to a standout level.
CRED takes the number one differentiated position in providing better offers, cashback, and reward points and is seen as one of the most innovative platforms.
The study also shed light on the importance of user preferences revealing ‘Easy to Use’ and ‘Instant Payment’ as the key benefits consumers cite for using Mobile Payment Apps, propelling growth for payment platforms.
This year’s DigiPay CuES Survey also revealed, Cash which has been the world’s foundation for centuries, is leaning towards redundancy, with more than half (58%) of the consumers surveyed stating a reduction in their cash spend, especially among the older demographic (35+ years and above). As per the survey, “buy now, pay later” (BNPL) financing is also moving further into the mainstream for the Indian consumer, with close to 1 in 3 (31%) claiming having used Buy Now Pay Later facility in the last 1 year.
There is substantial gain in popularity and experience with mobile payment apps coming from customers in non-metros (like Pune, Chandigarh, Bhopal, Indore etc.) older demographic (>35yrs) as well as customers from lower socio-economic classes.
The top 3 digital transactions by consumers on the payment app include:
- 75% made bill payments like mobile & utilities e.g. Electricity, Gas, etc.
- 57% used it for transferring money or receiving money from friends/ family
- 51% used it for Online shopping
Recommendation levels of consumers jumped from 34 to 46 (NPS) for the Payment Apps category over a period of a year. Improved perceptions of Trust and safety are definitely a contributor to this increasing popularity. A resounding 88% of the users surveyed in the study feel that Mobile Payment Apps /UPI Apps have improved on ‘Safety features’. In fact, ICICI Bank’s iMobile among its consumers was highlighted as the #1 for its security features.
The study reveals frequent usage reflects better experience and satisfaction. This is because usage builds familiarity with the app’s interface and features, making it easier and more intuitive to navigate and if the Payment App delivers on trust and experience, it is likely to affect loyalty positively.
With customers sporting multiple payment apps on their phones simultaneously, there is tough competition among brands.
The top factors of preference among payment apps for consumers are:
- Trust & Security
- Offers/Rewards
- Range of Services
- Speed and Smooth transactions
- Transaction limits
- Ease of Use
Among the issues that consumers face, server issues and transaction failures rank the highest.
Piyali Chatterjee, National Head – Customer Experience (CX), Hansa Research, commented, “Our benchmark research aims to help brands identify adjustments that could have the biggest effects on enhancing service quality. Despite an improvement at an Industry level, a 20+ point spread persists between the highest and lowest Net Promoter Score. These disparities are a reflection of the varied user experiences across payment apps. To gain favour among consumers, brands need to focus on creating value through more services, and offers and providing a versatile platform.”
DigiPay CuES (Customer Experience Score) 2023, a syndicated study of Hansa Research, ranks Mobile payment platforms based on their Net Promoter Score (NPS). NPS is an outcome of brand perceptions as well as customer experience based on interactions with the brand and is frequently regarded as a predictive metric for business growth.
Methodology
The DigiPay CuES survey draws insights from more than 3000+ survey responses from Mobile Payment Apps users measuring 12 brands. Represented across age (18-35yrs: 73% and >35yrs 27%), 20 cities, and Gender (M-70%, F-30%). The proprietary survey results are based on consumers’ opinions of the experiences with the brands in the survey. Our report provides insights into the current and future digital payments landscape and the key factors influencing customer loyalty for a digital payments brand in India.
Brands part of the study:
- Amazon Pay
- Axis Mobile
- BHIM
- CRED
- Google Pay
- iMobile Pay (ICICI Bank)
- MobiKwik
- Paytm
- PayZapp (HDFC Bank)
- PhonePe
- Whatsapp Payments
- YONO (SBI)
About Hansa Research:
Hansa Research is the largest Indian Consumer Insights Provider who are in the business of insights and analytics for over 40 years having undertaken client assignments in over 80 countries. It is the first Indian insights and consulting company to acquire a US-based firm, GCR (formerly called Gartner Custom Research). The multi-national company headquartered in India has offices in Singapore, UAE, USA and Bangladesh.
Hansa Research Group is a part of R K SWAMY | HANSA Group of companies which are India’s leading multi-discipline, multi-location, marketing communications, and services groups, serving the needs of a wide array of companies globally.
