Here’s why Indian women prefer Aadhar-enabled payment systems

By Puja Sharma

According to the survey, more than 75% of the retailers mentioned that women within the age group of 21-30 years were the most digitally adept, with over 50% of this age bracket owning a smartphone and accessing digital content through it.

The insight was shared as part of a detailed survey titled  ‘Women Financial Index (PWFI)’  an annual Pan-India report showcasing financial consumption by women at retail outlets, by PayNearby.

The firm, which is India’s leading digital payments company and largest branchless banking network, found out that more than 58% of female customers, who availed basic banking services at PayNearby’s retail outlets preferred AePS to access their bank accounts. Cash continues to dominate the payment space among women as more than 60% prefer dealing in cash, followed by UPI QR and cards in that order.

According to the survey, more than 75% of the retailers mentioned that females within the age group of 21-30 years were the most digitally adept, with over 50% of this age bracket owning a smartphone and accessing digital content through it. This was immediately followed by the age group 31-40 years.

Over 60% of women customers, especially in the cash withdrawal markets, fell in the age group of 31-40 years, with assisted digital access of their accounts through AePS being the most used banking service. In urban and metro centres, which were remittance driven, 20-30 year-olds contributed to nearly 25% of women consumers, showcasing the growing trend of young women getting integrated into the workforce.

While cash remained the most preferred mode, UPI and cards also saw adoption among female consumers, with preferences ranging from 5-15% among different age groups. Prepaid cards and digital wallets were also found mentioned as a use case for accessing digital content/e-commerce in the digitally aware, smartphone-carrying customer segment.

Top 3 preferred payment services

Cash withdrawal, mobile recharges and bill payments were the top three services availed by women customers at retail touchpoints. At urban and metro centres, money remittance also saw good adoption. The transactions were primarily conducted by young working women belonging to the age bracket of 21-30 years (45%) and 31-40 years (25%).

In the withdrawal market largely driven by Tier III and rural regions, the majority of the transactions conducted by females were in the age bracket of 31-40 years (65%). Approximately 78% of women in Tier III and rural markets availed cash withdrawals. Overall, ₹1000-2500 was the most preferred range of withdrawal for women across the country.

The report further stated that while more than 75% of women operated their bank accounts themselves, they were primarily for cash withdrawal and cash deposits. Interestingly more than 20% of the women admitted to their husbands operating their bank accounts instead of themselves.

Post pandemic era, there was a growing awareness among females to save for medical emergencies and rainy days, with more than 40% of those surveyed indicating “Bachat” as a priority for them. Formal savings instruments though, continue to see thin adoption, with less than 15% of those surveyed aware of formal savings instruments. Penetration of evolved services such as insurance (less than 5%) also continues to below.

Anand Kumar Bajaj, Founder, MD & CEO of PayNearby, said: “It is heartening to see a growing trend of young women in the age group of 20-40 years, actively consuming digital financial services across retail stores in the country. Though the journey today is largely assisted, from here to a self-service mode will require us to work harder in creating a more empowered ecosystem around them.

This means ensuring easy availability of digital content, digital education, and digital banking products that can break tech and cost barriers and be easily assimilated across all segments of society. As our youth and women get more and more integrated into the digital way of life, it will lay down the foundation for a more evolved and empowered society.”

Further, the survey indicated that almost 35% of women visiting Kiranas and retail outlets for financial transactions used smartphones and also availed WhatsApp actively. Adoption in cities was as high as 50-60%. Rural Bharat also saw a good adoption, with double-digit adoption almost everywhere in the country. This signifies a growing adoption of digital services among women consumers visiting Kirana stores for financial transactions.

When asked about their top three saving goals, child education topped the list for women, which was followed by ‘medical emergency’, ‘home purchase’, and ‘purchase of gold’. 55% of women indicated ₹500-750 as their preferred range for monthly savings.

With just 5% of women customers aware of insurance as a service, the survey highlighted the impending need to create more awareness for the same, especially across rural and semi-urban markets. However, among the cognizant respondents, life insurance followed by health were the preferred choices.

Key insights

• Over 58% of females who avail of basic banking services at retail stores prefer AePS to access their accounts.
• Cash continues to be the king, with more than 60% of females preferring to deal in cash, followed by UPI QR and cards in that order.
• Most digitally adept women customers engaged in financial transactions at retail stores fall in the age group of 21-30 years.
• Cash withdrawal, bill payment, and mobile recharge – top three services availed by women customers at PayNearby agent outlets.
• An interesting trend is the emergence of domestic money remittance by young, working women at metros and Tier I cities.
• ₹1000-2500 was the most common range of withdrawal.
• Micro-savings in the range of ₹500-750 each month is the trend
• For saving goals – child education is the top priority, followed by savings for a medical emergency.