Purse or phone: age cohort of 21-30 years is more inclined towards digital payment

By Mehak Mudassir

“I believe in spending cash, as it is an easy way to pay while shopping. Since I don’t like online shopping, I don’t feel the need for digital payment. I feel paying cash protects my money and personal information, says Seema 51, a housewife.

Cash continues to dominate the payment space among women as more than 60 percent preferred dealing in cash, followed by UPI QR and cards, as per the ‘PayNearby Women Financial Index (PWFI)’ survey.

Digital payments and branchless banking network PayNearby partners with neighbourhood retail stores to provide digital and financial services to the local communities. In the second edition of the pan-India survey covering over 3,000 retail stores across the country, recording financial transactions of women, PayNearby said more than 58 percent of female customers preferred the Aadhaar enabled AePS to avail basic banking services.

More than 75 percent of the retailers said women in the 21-30 years age group were the most digitally adept, with over 50 percent of this age bracket owning a smartphone and accessing digital content through it. This was followed by the age group 31-40 years. “I only use digital payment so that I can keep a track on the money I spend. Besides, I get attractive discounts and vouchers for doing epayment,” says Zareen, 25, a corporate employee.

Her sentiments are echoed by Irene, a college student, “I only make digital payments for retail shopping or online shopping. I feel like I have money in my phone. I scan and pay everywhere. Plus I get vouchers and cash back using this payment method. Using cash has no benefits compared to using digital payments.”

In the remittance driven urban and metro centres, the 20-30 years group contributed to nearly 25 percent of women consumers, showcasing the growing trend of young women getting integrated into the workforce.

Cash withdrawals, mobile recharges and bill payments were the top three services used by women customers at the retail touchpoints. At urban and metro locations, money remittance services by them also saw good adoption. 

The transactions were primarily conducted by young working women belonging to the age bracket of 21-30 years (45 percent) and 31-40 years (25 percent). In the withdrawal market largely driven by tier III and rural regions, the majority of the transactions conducted by women were in the age bracket of 31-40 years (65 per cent), PayNearby said.

About 78 percent of women in tier III and rural markets availed cash withdrawals. Overall, Rs 1,000- 2,500 was the most preferred range of withdrawal for women across the country, it said. “Since I’m not so familiar with digital payment I just withdraw my pension from the ATM and use it. For me cash is the best way to spend money when I go shopping for anything I want,” says Shahida Bano, 70, a retired PDO.

Over 75 percent of the women operated their bank account themselves, even as 20 per cent admitted to their husbands operating their bank accounts.

On the post-pandemic scenario, it said there is now a growing awareness among women to save for medical emergencies and rainy days. More than 40 percent of those surveyed indicated ‘bachat’ (savings) as a priority. “I have been working as a maid for five years and my husband is a daily wage labourer. I save around Rs 100 to 200 daily so that I have something set aside for bad days. I had bought gold with my savings as an investment for my son’s education. Luckily, because of these savings we didn’t starve during the lockdown,” says Rohini, a domestic help.

Formal saving instruments, though, continue to see thin adoption, with less than 15 per cent aware of these instruments. Penetration of evolved services such as insurance (less than 5 per cent) also continues to be low.

“Whether it is our women force or the large underserved rural economy, it is important for us to measure the digital index across segments, to put in place appropriate actions wherever necessary. It is heartening to see a growing trend of young women in the age group of 20-40 years, actively consuming digital financial services across retail stores in the country,” said Anand Kumar Bajaj, founder, MD and CEO, PayNearby.

He said if more women start using digital payments, it will help drive up overall account ownership in the country. On top saving goals, the surveyed women preferred child education, followed by saving for medical emergencies, buying a house and owning gold. “Every month I invest in a gold scheme so that later I can buy gold every year. I have three daughters. I am saving for their wedding. Saving plays an important role in every woman’s life. Rich, middle class or poor women – every woman saves for her family,&rdq