'India Sees Rising Digital Payment Adoption As Nearly Half Of Households Go Cashless' SBI Report

New Delhi [India], October 30: Around 45.6 per cent of Indian households now use online shopping and digital payment channels to purchase at least one consumption item, indicating a growing use of digital transactions in household spending, according to a research report by the State Bank of India (SBI).

However, the report noted that 54.4 per cent of households still do not use digital payment modes for their purchases. Digital adoption varies across different categories of household spending, with consumables and services accounting for the highest share of online purchases at 39.68 per cent, followed by durable goods at 23.3 per cent. Food purchases, meanwhile, account for only 7.10 per cent of digital transactions.

"Food expenditure accounts for ~32.82% of total household consumption expenditure reflecting the continued importance of the basic consumption needs," the SBI research report said. Within the food category, routine grocery purchases have the highest digital adoption at 4.29 per cent, followed by served processed food at 2.6 per cent and packed processed food at 1.65 per cent.

Purchases of perishable food items continue to remain largely dependent on offline markets. Digital adoption stands at just 1.32 per cent for vegetables, 1 per cent for fresh fruits and 0.59 per cent for eggs, fish and meat. In the consumables and services category, general services account for the largest share of digital spending at 37.93 per cent, followed by fuel and light at 15.96 per cent. However, online transactions remain low for education and medical services, at 1.83 per cent and 1.69 per cent, respectively.

Among durable goods, clothing leads digital purchases with a 19.97 per cent share, followed by footwear at 12.05 per cent. However, high-value items such as furniture & fixtures and medical equipment have limited digital adoption at 0.18 per cent and 0.32 per cent, respectively.

The report also highlighted a significant difference in digital adoption across income groups. Online purchases increase with rising Monthly Per Capita Consumption Expenditure (MPCE), from 25.3 per cent among the bottom 20 per cent of households to 69.5 per cent among the top 20 per cent.

"The 44.3 percentage-point gap between the bottom and top quintiles highlights a substantial consumption gradient in online adoption," the report noted. Among states, Haryana ranks first in average monthly consumption expenditure across food, consumables and services, and durable goods. Goa, Nagaland and Kerala also feature among the leading states across major consumption categories.

The report further observed that households using digital channels have higher consumption expenditure compared to those relying on traditional payment methods. "Digitally adopting households exhibit 7.5% higher MPCE, indicating higher consumption levels among online users," the report added. "The results highlight that digital adoption is linked with higher consumption intensity and a shift towards diversified consumption patterns." 

ALSO READ: https://www.republicworld.com/india/farmers-in-distress-cyclone-arnab-threatens-extensive-paddy-loss-across-southern-odisha-2026-10-29-139916