In India, the millennial and Gen Z population is rapidly increasing, and so are their demands and expectations regarding payment options. These generations are digitally savvy and prefer online transactions, which is changing the landscape of the payments industry. Here are some of the trends that are shaping the payment preferences of millennials and Gen Z in India.
With the proliferation of smartphones, mobile payments have become increasingly popular in India. Millennials and Gen Z prefer mobile payment options as it is easy to use and provides a quick and secure payment method. Popular mobile payment options include Paytm, Google Pay, PhonePe, and BHIM UPI.
E-wallets have gained immense popularity in India among millennials and Gen Z. E-wallets provide a convenient and hassle-free way of making transactions without the need for cash or cards. They also offer loyalty points and cashback benefits, which makes them a preferred choice for online shopping. Popular e-wallets in India include Paytm, Mobikwik, and Freecharge.
Contactless payments are gaining popularity among millennials and Gen Z in India due to their convenience and safety features. With the ongoing pandemic, contactless payments are becoming the preferred method of payment for many. Contactless payments can be made through mobile wallets, debit/credit cards, and NFC-enabled devices.
Millennials and Gen Z in India are also opting for subscription-based payments for various services. With the rise of online streaming platforms such as Netflix, Amazon Prime, and Disney+, subscription-based payments have become a popular way of accessing these services. Subscription-based payments are convenient as they eliminate the need for manual payments and offer various plans to suit different budgets.
Cryptocurrency is still in its nascent stage in India, but it is gaining popularity among millennials and Gen Z. Cryptocurrencies such as Bitcoin and Ethereum are becoming an attractive investment option for many in India. Additionally, some businesses are also starting to accept cryptocurrency as a payment method.
Buy Now Pay Later (BNPL)
Buy Now Pay Later (BNPL) is a payment method that allows customers to purchase products and pay for them in instalments. This payment method is gaining popularity among millennials and Gen Z in India as it offers them the flexibility to make purchases without any immediate financial burden. Popular BNPL platforms in India include LazyPay, Simpl, and ZestMoney.
Social Commerce Payments
Social commerce payments are becoming increasingly popular in India, especially among millennials and Gen Z. Social media platforms such as Instagram and Facebook are now offering payment options that allow users to make purchases directly within the app. This payment method is convenient as it eliminates the need for users to switch between different apps for payment.
Conclusion In conclusion, the payment preferences of millennials and Gen Z in India are rapidly changing, and businesses need to adapt to these changes to remain competitive. Mobile payments, e-wallets, contactless payments, subscription-based payments, cryptocurrency, BNPL, and social commerce payments are some of the trends that are shaping the payment industry in India. By offering a wide range of payment options, businesses can cater to the diverse payment preferences of millennials and Gen Z in India.