Women Prefer Cash Over Cards For Transactions, Reveals Survey
Did you know that more than 10,000 women entrepreneurs have dispensed over Rs 900 crores of financial services in the last financial year ? This is an interesting insight by PayNearby, a branchless banking and digital network in India.
According to the survey, cash, which dominated the payment space among women in FY 2021-22, still continues to hold strong, with around 48 per cent of women saying they preferred dealing in cash. Aadhaar-led transactions and UPI QR too have gained momentum. Cards continue to have minimal presence in this segment.
The insight was shared as part of a detailed survey titled - PayNearby Women Financial Index (PWFI) – an annual Pan-India report showcasing financial consumption by women at retail stores, released by PayNearby in association with the Reserve Bank Innovation Hub (RBIH). The annual report, in its third edition, was based on a Pan-India survey conducted by the company among 5,000+ retail stores in the country, recording financial transactions of women consumers as observed in those outlets.
According to the survey, more than 75 per cent of the retailers mentioned that women within the age group of 18-30 years were the most digitally adept, with over 60 per cent of this age bracket owning a smartphone and accessing digital content through it. This was immediately followed by the age group 31-40 years.
Though cash has lost some ground since the last report, it still continues to be the most preferred mode of payment with 48 per cent citing cash payment as their first preference. Incidentally UPI too saw good growth in adoption among women consumers, with preferences ranging from 5 to 20 per cent among different age groups. Card continues to have little to no recall and usage in this segment.
Mobile recharges, bill payments and travel booking were the next three popular services availed by women customers at retail touchpoints. At urban and metro centres, money remittance saw good adoption with transactions being primarily conducted by young working women belonging to the age bracket of 21-30 years and 31-40 years. EMI payments at retail outlets also witnessed decent growth. Though mostly in the range of Rs 500-1000, the growth in EMI collection indicates increased awareness and appetite for credit and other financial products in women across the country.
The report further stated that while more than 74 per cent of women operated their bank accounts themselves, they were primarily for the purpose of cash withdrawals and cash deposits. Interestingly, more than 20 per cent of the women also admitted to their husbands operating their bank accounts instead of themselves.
When asked about their top three saving goals, ‘child education’ topped the list, which was followed by ‘medical emergency’ and ‘buying household electronic items’. Consumption of evolved services such as insurance still continues to be low (1 per cent) despite 29 per cent of women being aware about insurance products.
Further, the survey indicated that almost 39 per cent of women visiting Kiranas and retail outlets for financial transactions used smartphones and also used WhatsApp actively. Adoption in cities was as high as 50-60 per cent and rural India also saw a good adoption, with double-digit adoption almost everywhere in the country. This signifies a rising acceptance of digital services among women consumers visiting Kirana stores for financial transactions.
Another interesting trend that was visible was the leap in travel bookings made by women customers at the retail outlets. 90 per cent of the respondents showed willingness to book a rail ticket from their nearby store, with more than 16 per cent confirming that they have booked one in the last year. Financial identity through PAN card issuance also saw good adoption in this cohort, and although the numbers are still small, it indicates the growing awareness among women to become self-reliant and be a part of the formal financial economy.
Commenting on the findings, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “The findings in the PWFI report are inspiring and emphasise the fact that women of the country are slowly but steadily gearing up to walk hand-in-hand with India’s growth.
Rajesh Bansal, CEO, RBIH, said, “It is heartening to see that there is an uptake of digital financial products and services among women at the last mile. The PWFI report is an eye-opener and game-changer as it will help us leverage technology and innovation in the right direction. Serving as a template, it will help us build symbiotic partnerships and alliances in the financial services ecosystem to design smart, creative, and sustainable solutions for un/underserved women users in India.”
