Three in four, or 75% of urban Indians, have used at least one financial product—including investments, insurance or credit—through a payment app, according to the How Urban India Pays Report 2026 by the Pahlé India Foundation in collaboration with Amazon Pay. The findings are based on a survey of 5,149 consumers and 1,089 merchants across 100 cities in 20 states.
The report highlights a growing preference for consolidating financial services on digital platforms. 52% of consumers said they would prefer a single app for payments, investments, insurance and credit, while another 33% would consider such an app if it offered features comparable to dedicated platforms.
However, digital credit adoption remains considerably lower than awareness. While 88% of respondents are aware of digital credit, only 31% have used it. Trust is a major factor: payment apps received an average security rating of 4.11 out of 5, compared with just 3.10 for credit services.
The report also found that 51.5% of consumers would consider borrowing through a payment app if fraud protection were guaranteed. Tier-2 cities are emerging as important growth centres, recording a Digital Credit Inclusion Index score of 58.64, compared with 53.10 for Tier-1 and 55.77 for Tier-3 cities.
Want to deepen your expertise beyond today’s news?
Explore practical certification courses designed for banking, risk, insurance, compliance, ESG, AI, and emerging technologies professionals.
Learn from industry experts and earn certifications from RMAI and BFSI Sector Skill Council of India.
#Insurancenews
