‘Digital payments are boosting brands’ opportunities to connect with larger consumer base’

Digital transactions, especially UPI-enabled, are fast becoming the preferred mode of payment in India. From street vendors to big brands, everyone is offering consumers the convenience to pay without using cash. In understand the trend better, OTT platform ZEE5 has come out with a report on digital payments as part of their knowledge series ZEE5 Intelligence Monitor. The report talks about India’s growing quest for online transaction and different audience cohorts taking advantage of this technological advancement.

We caught up with Rajiv Bakshi, Chief Operations Officer- Revenue, ZEEL, to talk about the report, the nitty-gritty of digital payments in India, and more.

Edited Excerpts

Do you think the digital payment option will help brands add to their consumer base?

Yes, ZEE5 Intelligence Monitor’s latest report on digital payments asserts that it is creating a new set of consumers, with a very different mindset, across product categories. Digital payment has enabled customers to pay securely with just one click, leaving behind the worry of carrying cash with them, fuelling both planned and discretionary spending. The ubiquitous presence of the digital payment option and the ease & safety it offers would drum its rapid growth, boosting brands’ opportunities to connect with a larger consumer base.

Is there still a trust issue among consumers about making transactions using UPI apps?

As per industry reports, the transactions processed over UPI earlier this year exceeded a couple of billions. This encapsulates India's potential to emerge as a global leader in digital payments in many ways. It also serves as proof that most people find digital payments simple and secure to use while doing transactions.

We, through the ZEE5 Intelligence Monitor survey, discovered that majority of consumers feel comfortable using mobile wallets and UPI. Further, it came out that 63% of debit card users prefer digital payments since they consider it extremely safe. Most businesses accept it as a payment mechanism, which has increased its usage. Having said that, ZEE5 Intelligence Monitor’s findings suggest that if companies continue to create awareness about it and reaffirm the key attributes, there is tremendous room for its growth across all audience cohorts.

How is the adoption of digital payment among women?

Through ZEE5’s Intelligence Monitor Digital Payment report, it came out that women increasingly prefer digital payments because they feel independent, tech-savvy and empowered. Due to the system's simplicity of use, 47% of women use it for online shopping, outpacing their male counterparts in many markets. Amongst housewives, mobile wallets are commonly used for grocery buying. When combined with the next phase of growth in digital payments, more women will enter the fold on the back of increased financial literacy and awareness, coupled with concerted efforts by various stakeholders to promote women's financial inclusion.

How is the M&E industry going to get benefitted due to the penetration of digital payments?

Every industry in the country has benefited from the rise and growth of digital payments across urban and rural landscapes. The M&E industry, including the OTT ecosystem, is also a beneficiary of this mega transformation. As a consumer-first brand, we believe empowering consumers is the key to success and long-term value creation. In the OTT space, consumers have the liberty to choose from multiple models like AVOD, SVOD, freemium, TVOD; Digital payments is enabling these transactions across all audience cohorts and creating new subscribers.

The Tier 2 cities have come out as the hotbed for digital payments, is it going to bridge the gap between the urban consumers and them?

Consumers’ aspirations are similar across regions. Affordability and access to products make them look different. Multiple advancements in the Internet economy, ranging from e-commerce to OTT to digital payments, has blurred this differentiation.

To meet the existing necessities and improved infrastructure of Tier 2 cities, multiple developments and advancements have been brought about across levels. The survey, as we see, reveals that the leading factors that make these cities the hotbed for digital payments, are ease and speed of use, safety and instant benefits; multiplied with the massive population in these clusters.

Finally, what is the future of digital payment methods in India?

The future of the digital payments is bright and unparalleled; and it shall act like a bright spot in India’s growth story across the globe. It will demonstrate its empowering ability across the economic landscape, in urban as well as rural households. As a partner to digital payments companies, we believe ZEE5 can contribute to this success story.