Mumbai, India, November 1, 2022 – New research from FIS, a financial services technology provider, shows Indians’ willingness to adopt embedded finance, such as embedded payments, and explore various offerings in the Metaverse.
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally.
What is UPI?
Unified Payments Interface is the underlying framework that provides an interconnected system to facilitate app-based payments between merchants, consumers and banks.
It was created by the National Payments Corporation of India (NPCI) – a subsidiary of the Reserve Bank of India.
Embedded Finance
Embedded finance is when consumers have unique, tailored financial services delivered to them at the point of need by non-financial companies. The recent survey from FIS examines common embedded finance experiences, including embedded payments, embedded lending, embedded insurance and investing, as well as the use cases of offerings in the Metaverse. The survey offers responses collected by consumers in India, belonging to different age groups, cities, gender and salary scales.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]As the physical, digital and virtual worlds are converging, Indians are willing to explore and purchase within apps/browsers as well from the social media platforms.[/perfectpullquote]
Key findings
- 76% Indians prefer using UPI (Unified Payments Interface), the homegrown instant real-time payment system, during online checkouts; Millennials (84%) accounts for the highest among the surveyed age groups to use UPI when shopping online.
- 72% Indians consider discounts and offers as the major driver of their buying behaviour on social media apps.
- 68% Indians said they are interested to try shopping in the Metaverse. In terms of socializing, Men (60%) are keener to try out dating and virtual events in the Metaverse as compared to women (48%).
Embedded Finance Adoption Trends
As the physical, digital and virtual worlds are converging, Indians are willing to explore and purchase within apps/browsers as well as from social media platforms:
- 78% Indians say they are likely to purchase fashion products such as clothing, shoes, and accessories, while 70% would shop for groceries through social media apps.
- 63% Indians will purchase in-app/in-browser gift vouchers, 55% would buy insurance and investment products in the next 12 months.
Customers of tomorrow favour faster, intuitive and seamless payment experiences integrated within new and emerging consumer touchpoints:
- When it comes to online shopping, 76% Indians prefer using UPI during checkouts.
- 84% of Millennials account for the highest among the surveyed age groups to use UPI when shopping online.
Apart from a hassle-free customer experience, Indians seek instant gratification and incentives during online purchases:
- 72% Indians consider discounts and offers, while 63% perceive convenience as the major driver of their buying behaviour on social media apps.
- 63% of Indians favour in-app purchases because they are faster, convenient and offer rewards and cashback
Although Indians reflect readiness to embrace embedded financial services, brands need to ensure transparency and safety to win the trust of customers:
- 92% of Indians have concerns while making purchases within social media platforms.
- 56% Indians worry about fraudulent sellers on social media platforms and 62% of Indians worry experiencing fraudulent transactions while making in-app purchases.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Indians are keen to embrace the emerging Metaverse space as they show interest in buying real-world products virtually in the future.[/perfectpullquote]
Metaverse Engagement Trends
Indians are keen to embrace the emerging Metaverse space as they show interest in buying real-world products virtually in the future:
- 68% of Indians would like to explore shopping in the Metaverse and 57% of Indians would prefer to access the Metaverse for banking services in the next 12 months. Products and services that Indians are keen on purchasing in the Metaverse include virtual clothing/ fashion (56%), event tickets to music concerts/ sports match (52%) and games/gaming tokens (51%).
- Men (60%) are more interested in trying socializing, dating and virtual events in the Metaverse as compared to women (48%).
“As India has been witnessing a surge in digital marketplace, which is driven by quick delivery and return policies of marketers, special offers, targeted advertisements, better internet availability and use of smartphones, adoption of embedded finance in India is on the rise and is expected to maintain the upward trajectory in the next 12 months. Embedded finance has a great potential to transform customer payment experience offered by banks and financial institutions and drive new avenues of growth for partnering merchants.” Mentioned by FIS Leader.
They further added “Customers of today expect seamless purchasing experiences and embedded services carry the promise to deliver them. However, the transparency involved in such offerings also needs to be considered by merchants to ensure the safety of their customers, while delivering an enjoyable payment experience.”
See also: Bank of Maharashtra to Transform its Customer Communications with WhatsApp Banking Service