One-Third of Digital Payments in 2024 Made via Credit Cards and EMIs: Report

New Delhi, April 11, 2025 — Nearly one-third of all domestic digital transactions in 2024 were conducted using credit cards or interest-bearing monthly installment (EMI) plans, according to a new report. This trend highlights a significant shift in consumer behavior towards financing larger expenses through structured credit solutions.

The report, released by digital payments company Phi Commerce, shows that the Unified Payments Interface (UPI) has emerged as a transformative tool in the Indian payments ecosystem, accounting for 65 percent of the total digital transaction volume. While UPI remains the dominant mode for small and mid-sized payments, credit cards and EMI plans are increasingly being used for higher-value purchases.

As per agency report, digital credit adoption has grown significantly in sectors such as education, healthcare, and vehicle-related expenses. The report notes that seasonal spending patterns, school admissions, and festive shopping contribute to increased reliance on short-term credit, reflecting a preference among consumers to spread out payments during periods of higher expenditure.

The findings are based on data collected from over 20,000 merchants across the country and provide insights into changing financial behavior. Consumers are now more inclined to finance their purchases rather than pay in full upfront, particularly in education (10 percent), healthcare (15 percent), and vehicle assistance (15 percent) categories.

Rajesh Londhe, co-founder of Phi Commerce, emphasized that the growing use of UPI and flexible credit options is shaping the future of financial inclusion. He noted that responsible use of these tools can strengthen financial stability and promote inclusive economic growth.

The report also indicates a clear shift in customer attitudes toward financial management, with increased reliance on EMI plans for school fees, medical expenses, and large online purchases. This suggests that consumers are adopting a more structured and phased approach to spending and financial planning.