One in 3 merchant payments involves credit score: Fintech report

MUMBAI: Around one in three digital cost transactions with retailers in India throughout 2024 have been credit-based, both by bank cards or EMIs, displaying a shift in the direction of short-term financing and phased spending. An evaluation, primarily based on transaction information from over 20,000 retailers, confirmed that UPI accounted for 65% of all digital transactions, whereas 75% of recurring utility and govt payments shifted to UPI autopay.

According to the “How India Pays” report by fintech agency Phi Commerce, there’s a regular rise in credit score adoption throughout sectors corresponding to schooling, healthcare, and auto ancillaries. EMI-based payments made up 10% of digital transactions in schooling, and 15% every in healthcare and auto-related purchases.
These traits point out that customers are more and more deferring high-value bills and spreading them over time, particularly throughout college admission intervals, medical emergencies, and festive purchasing seasons.
Before the arrival of UPI autopay, standing directions for recurring payments have been cumbersome and concerned prolonged processes.