Digital payments power high-value spends across sectors: Report
ETtech
Synopsis
According to a report titled ‘How India Pays’ by fintech firm Phi Commerce, while UPI continues to dominate small and medium-value transactions, the reliance on EMIs and credit cards to finance larger transactions is on the rise.
By ETtech
India’s digital payments landscape is increasingly expanding beyond everyday retail and utility transactions to power larger, high-value spends in sectors like education, healthcare, and auto services, according to a new report by fintech firm Phi Commerce.
For instance, EMI-based transactions, traditionally associated with consumer durables and electronics, are now seeing rapid adoption in education and healthcare, where affordability and access are key concerns, it noted.
In education, EMIs now account for 10% of digital payment volumes, driven by parents opting to spread out school and college fees into monthly instalments. Net banking and UPI are also widely used. In healthcare, where upfront costs can be prohibitive, EMIs now make up 15% of digital payments, with hospitals offering instalment plans for medical treatments.
A similar trend is visible in the auto ancillary sector, where EMIs are being used for vehicle repairs and accessories alongside credit cards and UPI.
In food and beverage, UPI remains dominant in quick service restaurants (QSRs) and online delivery platforms, while digital rewards and credit cards are finding favour for subscriptions and bulk orders. Even in government and utilities, digital payments have taken hold, with UPI and direct transfers accounting for 95 percent of payment volumes.
The report indicates that the country’s digital payments ecosystem is not just growing in volume but also maturing in functions — offering flexible, financing-backed solutions for sectors where affordability is critical.
“Businesses, financial institutions, and payment service providers must recognise that digital payments are no longer merely an alternative—they are essential for future competitiveness. Organisations that proactively embrace innovative, flexible digital payment solutions will shape India's financial future,” the report said.
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According to the report titled ‘How India Pays’, while Unified Payments Interface (UPI) continues to dominate small and mid-value transactions — accounting for 65% of overall digital volumes — there is a growing reliance on EMIs and credit cards to finance bigger-ticket needs.For instance, EMI-based transactions, traditionally associated with consumer durables and electronics, are now seeing rapid adoption in education and healthcare, where affordability and access are key concerns, it noted.
In education, EMIs now account for 10% of digital payment volumes, driven by parents opting to spread out school and college fees into monthly instalments. Net banking and UPI are also widely used. In healthcare, where upfront costs can be prohibitive, EMIs now make up 15% of digital payments, with hospitals offering instalment plans for medical treatments.
A similar trend is visible in the auto ancillary sector, where EMIs are being used for vehicle repairs and accessories alongside credit cards and UPI.
In food and beverage, UPI remains dominant in quick service restaurants (QSRs) and online delivery platforms, while digital rewards and credit cards are finding favour for subscriptions and bulk orders. Even in government and utilities, digital payments have taken hold, with UPI and direct transfers accounting for 95 percent of payment volumes.
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The report indicates that the country’s digital payments ecosystem is not just growing in volume but also maturing in functions — offering flexible, financing-backed solutions for sectors where affordability is critical.
“Businesses, financial institutions, and payment service providers must recognise that digital payments are no longer merely an alternative—they are essential for future competitiveness. Organisations that proactively embrace innovative, flexible digital payment solutions will shape India's financial future,” the report said.
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