UPI Dominates India's Food Delivery Payments

Expert Market research consumer inteligence study explores consumer payment preferences in India's food delivery market, revealing a preference for UPI, cash on delivery, and online cards. It highlights how these insights help companies tailor their payment options and strategies to meet diverse customer needs, enhancing user experience and loyalty in a competitive market.

A comprehensive survey conducted by Expert Market Research has shed light on the various payment methods favored by consumers when ordering food online. The survey, which gathered responses from over 50,000 individuals across the country, reveals insightful trends that illustrate how Indians prefer to pay for their food deliveries, highlighting the blend of traditional and modern payment options shaping the market.

How Indians Pay for Food Delivery

The study reveals a clear pattern for UPI    (Unified Payments Interface) among Indian consumers, with 55.36% opting for this method. The consumers prefer to pay for the food with the world’s most fastest adopted method of UPI. This choice by consumers are purely driven by the convenience, speed, and the seamless experience it offers for transactions. The rapid digitization and digital India programs by Indian government also aided the growth of this mode of transaction among the Idina consumers. 

Following UPI, cash on delivery (COD) remains a significant method, with 18.75% of consumers still opting for it. It is largely because few consumers sections believe that COD payments will prevent any quality issue or assuage their underlying fear of not receiving the food on time. It is driven by a desire for security and trust in physically exchanging money upon receipt of goods. But that is changing as many outlets have removed the option for cash on delivery and rather provide assurance in the form of refunds and cashbacks.

Why Digital Payments Are Growing in Indian Food Delivery

The trend is working as 25.89% of consumers prefer other online transactions methods such as using credit or debit cards, pay later options and so on. This trend is reflecting the growing adoption of digital payments due to their convenience and the numerous cashback and reward schemes offered by banks. Indian consumers and the younger GenZ are slowly warming up and being influenced by promotional activities and loyalty programs. These trends illustrate the diverse payment preferences in India, shaped by security concerns, promotional incentives, and evolving digital payment infrastructure.

Our study delves into these preferences to help food delivery companies tailor their payment options and marketing strategies. The consumer survey tells us that understanding these preferences helps food delivery companies tailor their payment options and marketing strategies. By offering a variety of payment methods, businesses can cater to the diverse needs of their customers, enhance their overall experience, and foster customer loyalty. This approach ensures companies remain competitive and responsive to evolving consumer trends in the dynamic food delivery market.