UPI dominates digital transactions as women increasingly embrace online banking, credit, and investments, though technology spending remains relatively low

India's digital financial ecosystem is witnessing a major transformation as women increasingly adopt online payment platforms, digital banking, and investment tools. A new study by DBS Bank India, conducted in collaboration with Deloitte Touche Tohmatsu India LLP, highlights how women entrepreneurs are moving beyond basic digital payments to embrace broader financial management solutions. However, the report also reveals that investment in business technology remains relatively limited, indicating significant growth opportunities for India's digital economy.

The study, titled "Women and Finance: The Digital Opportunity – Access, Adoption and Trust," surveyed 1,342 women across the country, including entrepreneurs, high-net-worth (HNW) individuals, and rural women earners, to understand evolving financial behaviours in the digital era.

UPI Continues to Drive Financial Inclusion

Unified Payments Interface (UPI) has firmly established itself as India's preferred digital payment platform across all categories of women users. The report found that UPI is now the primary gateway for accessing formal financial services, making transactions faster, safer, and more convenient.

Among the surveyed groups:

• 77% of high-net-worth women regularly use UPI.

• 72% of women entrepreneurs rely on UPI for business and personal transactions.

• 54% of rural women earners have adopted UPI as part of their daily financial activities.

The widespread adoption of UPI reflects the success of India's digital payments infrastructure in improving financial accessibility across both urban and rural markets.

Digital Finance Expands Beyond Payments

The study indicates that women entrepreneurs are no longer using digital platforms only for receiving or making payments. Instead, they are increasingly leveraging online financial services to manage business finances, secure funding, and build investment portfolios.

Among women entrepreneurs:

• 84% use digital payment platforms.

• 38% access online loan and credit services.

• 29% invest through digital brokerage and investment platforms.

This shift demonstrates growing confidence in digital financial ecosystems and highlights the expanding role of fintech in supporting women-led businesses.

Technology Investment Still Lags Behind

Despite strong digital adoption, investment in technology infrastructure remains relatively modest. Only 37% of women entrepreneurs reported spending on software, business technology tools, or digital platforms to improve operational efficiency.

Business expenditure patterns show that entrepreneurs continue to prioritize immediate operational needs:

• 65% allocate funds towards employee salaries and contractor payments.

• 53% invest in digital marketing, branding, customer acquisition, and content creation.

• 37% spend on software and technology solutions.

• 26% invest in inventory and production costs.

• 22% spend on office or warehouse rentals.

Experts believe greater investment in digital tools such as accounting software, inventory management systems, customer relationship management (CRM), and automation solutions could significantly improve productivity and long-term business competitiveness.

Credit Cards Becoming an Important Financial Tool

The report also highlights increasing credit card adoption among urban women entrepreneurs. Nearly half of the respondents frequently use personal credit cards for business-related expenses, with usage rising sharply among higher-income entrepreneurs.

Travel-focused benefits remain the most preferred reward category, with nearly 65% of entrepreneurs and HNW women choosing benefits such as airport lounge access, airline miles, hotel discounts, travel insurance, and reward points.

This trend suggests that women business owners are becoming more comfortable using formal credit products to manage liquidity and optimize spending.

Rural Women Gradually Transition Towards Digital Payments

While digital finance adoption continues to rise in rural India, the transition remains gradual. Cash continues to play an important role alongside digital transactions, creating a hybrid payment ecosystem.

The survey found:

• 48% of rural women use digital payment platforms.

• 42% access banking services through mobile banking applications or websites.

Education emerged as a significant driver of digital adoption. Graduate women recorded substantially higher digital payment usage compared to women with only primary-level education, highlighting the importance of digital literacy in financial inclusion.

Rural women also continue to focus spending on essential business requirements, including raw materials, transportation, and rental expenses.

Security and Trust Continue to Shape Digital Adoption

Although digital financial services are becoming increasingly popular, cybersecurity concerns remain one of the biggest barriers to wider adoption.

According to the study:

• 62% of women entrepreneurs identified data privacy and digital security as major concerns.

• 46% cited complicated user interfaces as a challenge while using digital financial services.

• Nearly 46% of women entrepreneurs reported experiencing digital fraud or financial scams at some point, emphasizing the need for stronger cybersecurity awareness and safer financial platforms.

Building trust through enhanced security features, simplified user experiences, and greater financial literacy will be critical for sustaining future digital finance growth.

India's Digital Economy Creates New Opportunities for Women Entrepreneurs

India's rapidly expanding fintech ecosystem, combined with increasing smartphone penetration and supportive government initiatives, is creating unprecedented opportunities for women entrepreneurs to access digital financial services.

As more women embrace online payments, investments, lending platforms, and digital banking, financial inclusion is entering a new phase where technology is becoming an essential business enabler rather than merely a payment mechanism.

Industry experts believe that encouraging higher investment in business technology, improving cybersecurity awareness, and expanding digital financial education will play a crucial role in empowering women-led enterprises and accelerating inclusive economic growth.

Conclusion

The DBS-Deloitte study highlights that Indian women entrepreneurs are becoming active participants in the country's digital financial revolution. While UPI continues to serve as the foundation for digital transactions, adoption is steadily expanding into lending, investments, and business management. However, greater investment in technology tools, stronger cybersecurity measures, and improved digital literacy will be essential to unlock the full potential of women-led businesses and strengthen India's evolving digital economy.