Moneycontrol Bureau
Young Indians in the age group of 18-28 years are playing a significant role in promoting online transactions. According to a survey conducted by Visa, a global electronic payment company, those people spend 16% of their monthly disposable income online while they are ranked third among 16 Asia Pacific countries with total annual disposable income of Rs 7.73 lakh crore.
However, the figure is way below the global estimates wherein young consumers are already living the digital life with 60% of those surveyed saying they are already transacting online using their personal computers or laptops, and nineteen percent on their mobile phones.
"We believe the Millennials play a significant role in boosting electronic payments in India. They have an active digital lifestyle and are embracing new payments technologies. At Visa we see mobile and online payments as a game changer and we're providing the Indian Gen-Y with advanced and robust electronic payments technology to drive growth towards a cashless and a more efficient environment," Uttam Nayak, Group Country Manager India & South Asia, Visa said in a release.
Millennials is the coinage that denotes people in the age bracket of 18-28.
Among those who purchase online, four in 10 make online purchases at least monthly, indicating a healthy appetite for buying online. However, 24 percent of the millenials prefer cash on delivery as the most preferred payment method for online purchases, followed by debit card which is preferred by 21%.
"There is a strong opportunity for the growth of debit cards in general as it is the preferred payment product for four in 10 Indian millennials and 47 percent use it especially for high value payments of over Rs. 1,000," the survey report said.
The survey has also identified several drivers that indicate how millennials today are increasingly embracing electronic payment methods. 71 % of the millennials interviewed look for security over convenience, acceptance, and flexibility as the most important product features across different payment methods, according to the survey.
"Ability to pay over time, use for unplanned purchases, maximizing rewards program, getting discounts, not having to carry cash and convenience over cash are the key drivers motivating the millennials in India to use credit cards," it said.
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