Bridging the gender gap in digital payments
India’s digital payment revolution is well underway, yet a significant gender gap persists. While Unified Payments Interface (UPI) has transformed transactions for millions, women—especially those in rural areas—continue to face challenges in embracing digital payments. According to a Women’s World Banking report, over 200 million Indian women are poised to adopt digital payments if provided with the right support and education. Increasing their participation is not just about financial convenience—it is crucial for achieving holistic financial inclusion and economic empowerment.
Challenges women face in adopting digital payments
Despite progress, several barriers continue to hinder women’s adoption of digital financial services:
- Limited digital literacy: The Women’s World Banking report states that only 35% of women in India are aware of digital financial services, and an even smaller percentage actively use them. According to a GenderIT study, women street vendors hesitate to use digital payments due to a fear of making errors and being scammed.
- Lack of trust in digital transactions: Many women still prefer cash due to concerns about fraud and the security of digital payments. Building trust is essential to encouraging digital adoption.
- Access to mobile devices and internet connectivity: While smartphone penetration has increased, many women either do not own a personal mobile device or share it with family members, limiting their ability to make independent transactions.
- Limited local support: A study from the Economic Times BFSI indicates that women are more likely to adopt digital financial services when introduced to them by local agents or women influencers from their communities.
Initiatives to drive digital payment adoption among women
For India to bridge the digital payment gender divide, targeted efforts are necessary. Here’s what can help:
- Community-led digital literacy programs: Training programs led by local women influencers can empower more women to confidently use digital payments. As seen in Accion’s research, scaling digital financial services in rural India requires culturally relevant education tailored to women’s specific needs.
- Secure and simplified payment solutions: Payment solutions must focus on intuitive and vernacular-friendly user interfaces to ease adoption for first-time users. Integrating features such as regional language support, and simplified transaction flows can help women—especially those with limited digital literacy—feel more comfortable using digital payments. Additionally, ensuring easy access to customer support and dispute resolution can further enhance trust and usability.
- Government and fintech collaboration: The Indian government, along with fintech firms, should expand initiatives like ‘UPI for Her’ to reach a broader audience. Programs that provide financial incentives for women-led businesses to accept digital payments can further accelerate adoption.
- Financial Products Tailored for Women Entrepreneurs: Platforms like Mahila Money offer micro-loans and business-friendly digital banking services that help women entrepreneurs transition smoothly into digital transactions.
The way forward
Digital payments are more than just a convenience—they are a powerful tool for economic empowerment, enabling millions of Indian women to participate more actively in the financial ecosystem. The rise of UPI-first payment solutions, particularly those with QR-based transactions and intuitive digital interfaces, is making financial services more accessible to women entrepreneurs and small businesses. Razorpay POS aims to play a role in this transformation by offering secure, easy-to-use digital payment solutions that build trust among users.
With fintech innovations driving secure transactions, the transition to digital payments is becoming more viable for women-led businesses. Razorpay POS’s QR-based and card payment solutions help small businesses accept digital payments effortlessly, ensuring financial inclusion at the grassroots level. As more women embrace digital payments, the resulting economic impact will extend across households, businesses, and the broader financial landscape—driving long-term growth and empowerment.
