UPI Or Credit Cards? Indian Youth Wants A Mix Of Both: Survey

What is the reason for Indian youth’s frustration with the digital payment system? According to a survey conducted by a payment platform Kiwi, and market research platform Unomer, around 70 per cent of the youth surveyed prefer a Unified payment interface (UPI) for making daily expenditures, whereas 81 per cent prefer credit cards for big purchases due to interest-free credit periods. 

The survey was conducted in eight cities in India (Mumbai, New Delhi, Bangalore, Pune, Hyderabad, Chennai, Ahmedabad, and Kolkata) on 1,004 people. It targeted people in the age group of 21 to 35 years.

Not Just Cashback, Youth Want Guaranteed Cashback On Every Transaction

The self-administered questionnaire-based data shows that 49 per cent of the respondents want cash back regardless of transaction size. At the same time, 50 per cent of respondents seek a guaranteed cash back on every transaction, a reason that 27 per cent of the respondents find scratching cards frustrating for their insignificant rewards and for messages like ‘Better luck next time’.

Cashback is something they eagerly look for while making payments digitally.  

Rewards And Points Are Reasons For Frustration

The data reveals that missing out on rewards is also a concern among the youth. They feel it frustrating when rewards or points are missed out. Around 44 per cent of the respondents consider missing out on rewards and points as their financial loss and attribute the lack of better financial payment modes to this. 

Credit-Oriented Youth

The survey finds young professionals to be more credit-oriented.

• As per the data, 81 per cent of the respondents believe credit cards are beneficial due to the interest-free credit period they offer.

• For the same reason, nearly three-fourths of the respondents dislike UPI. Specifically, 74 per cent of young people view UPI’s instant payment deduction as a disadvantage.

• However, 85 per cent agree that UPI is accepted more widely than credit cards.

Vinay Bapna, CEO, Unomer, says, “The findings reveal that missed rewards and a lack of awareness about smarter payment options are key sources of financial frustration. As digital payments evolve, consumers seek a seamless blend of convenience, credit access, and guaranteed rewards”.

Young users prefer credit-based payment methods and seek options that offer wide presence, convenience, and a free credit period. Will their preferences for payment modes change?

Will Users Prefer UPI Or UPI-Enabled Credit Cards Over Other Credit Cards?

Mohit Bedi Co-Founder and CBO, Kiwi, opines, “The integration of RuPay credit cards with UPI is reshaping consumer payment behaviour, particularly among young adults. With UPI now reaching 35 crore users, we anticipate exponential growth in the use of UPI-enabled credit cards. Our survey findings suggest that this solution is well-positioned to become a preferred choice for transactions of all sizes”.

In short, the survey findings show that ‘consumers want instant, guaranteed rewards rather than uncertain or delayed benefits’ and growing demand for credit-on-UPI, due to their both convenience and easy liquidity.

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