India's home-grown digital payments platform is going places. Quite literally. From France to UK to Belgium to Singapore to UAE -- the unified payments interface, or UPI network has been expanded to over 10 nations already, and more are on the anvil. For India’s gen-z and millennials, these platforms have brought freedom and ease in financial transactions big and small.
As part of our on-going series "The UPI Generation", CNBC-TV18 polled a cross-section of users from these two generations to understand whether this freedom and ease has resulted in lesser savings?
According to CNBC-TV18's poll, 75 percent of young India, which uses online payment apps for daily financial transactions, say they have to frequently check their bank balances to keep track of how much they have spent, and how much money they still have available. Over 16 percent say they're unable to keep track, while a little over 4 percent use manual spread-sheets, accounting ledgers and third-party apps to track their spending patterns.
But here, there's a split between millennials and gen-z. While 51 percent of gen-z says tracking expenses has become tougher, a larger 56 percent of millennials say it has not. But a majority of both groups say there has not been any significant change to their savings because of digital platforms -- 48 percent among gen-z and 42 percent among millennials.
Ranen Banerjee, Partner at PwC said, "When you are spending on a credit card, you get a message saying this is the balance left, with UPI the balance left message is not there. UPI is used more prevalently, internet banking not so much, therefore there could be a mismatch. But, with financial literacy going up and adoption going up, it should not be a very big challenge."
2022 has been a solid year for India’s unified payment interface... and this is expected to accelerate sharply in the coming year, as the platform is made accessible to more countries. India is already talking to close to 30 countries for UPI and RuPay adoption.
For domestic users, this technology will open up new avenues to spend, save and invest with the click of a button. But this will also mean that users have to do a little extra to keep track of their money, and ensure strong security protocols to safeguard it.