From ATMs to QR Codes: India's Payment Habits Are Changing Fast
What Happened
India's payment ecosystem is rapidly shifting toward UPI QR codes and online transactions, while ATM usage and other cash-based infrastructure are stagnating or declining. UPI QR codes grew 16.9% year-on-year to 792.6 million by June, while ATM withdrawals continued to fall. Consumers and merchants are increasingly preferring quick digital payments over cash. Online credit card transactions surged, and digital payment value grew 22% in FY26, taking the cashless payments-to-GDP ratio to 35%.
Key Takeaways
India is becoming a 'scan-first' economy, with UPI and digital payments steadily replacing cash withdrawals as the preferred mode of everyday transactions.