FIS, BFSI News, ET BFSI

As the Covid-19 pandemic accelerated the adoption of digital payments in India, 68 percent of Indian consumers surveyed by FIS are now using online or mobile banking applications to transact.

A survey conducted by FIS between June 2020 and April 2021 looks at how the pandemic has impacted the consumer behavior on how they transact and found that there’s a significant shift on digital payments uptake where 94 percent of GenZ users own mobile wallets.

A similar surge is seen in the Buy Now, Pay Later (BNPL) during the pandemic, especially among younger generations. On an average, 32 percent of consumers own a BNPL app, and most often consumers use Amazon or Flipkart’s BNPL option.

Bharat Panchal, Chief Risk Officer, APMEA, FIS said: “The pandemic has led India to a new phase of digital payments adoption. To be successful, it’s vital that the banking sector provides technology-centric strategies which meet the diverse preferences of consumers’ rapidly changing habits, while also driving financial inclusion for underserved communities around the country.”

The report also points out that as the usage increases there has been an increase in financial frauds during the pandemic where consumers increasingly become more vulnerable. Around 34 percent of people surveyed have reported financial frauds in the past 12 months.

The fraud number rises to 41 percent among Gen Y and financial frauds were mostly related through phishing, QR code/UPI scams and card scams too.