{"id":566282,"date":"2025-01-20T12:44:13","date_gmt":"2025-01-20T11:44:13","guid":{"rendered":"https:\/\/ibsintelligence.com\/?post_type=ibsi_news&p=566282"},"modified":"2025-01-20T12:44:13","modified_gmt":"2025-01-20T11:44:13","slug":"indias-non-metro-cities-outpace-metros-with-175-payment-growth","status":"publish","type":"ibsi_news","link":"https:\/\/ibsintelligence.com\/ibsi-news\/indias-non-metro-cities-outpace-metros-with-175-payment-growth\/","title":{"rendered":"India’s non-metro cities outpace metros with 175% payment growth"},"content":{"rendered":"

\"Payments,India\u2019s digital payment revolution is no longer confined to its bustling metros. According to a new whitepaper by Visa<\/a>, Bridging the Gap: Payments in India Beyond Metros, non-metro cities\u2014particularly Cat B and Cat C+\u2014are emerging as the nation\u2019s most dynamic growth hubs for digital transactions. Since 2019, card spending in these regions has soared by an impressive 175%, outpacing growth in metros.<\/p>\n

The whitepaper, released by Visa Consulting & Analytics (VCA), highlights the rapid adoption of digital payments in non-metro cities, driven by a mix of rising incomes, improved digital infrastructure, and tailored financial products. It categorises India\u2019s cities into three groups: Cat A (metros like Mumbai, Delhi, and Bengaluru), Cat B (rising cities like Jaipur and Bhubaneswar), and Cat C+ (emerging hubs like Sangli and Tumkur).<\/p>\n

Non-Metros: The Rising Stars of Digital Payments<\/h4>\n

Non-metro consumers are increasingly embracing digital payments<\/a>, with Cat C+ cities witnessing a remarkable fourfold rise in consumers spending over \u20b92 lakh annually per card, compared to just a 1.4X increase in metros. The share of online spending in these cities has also skyrocketed from 53% to 73%, fueled by growing eCommerce penetration and discretionary spending on categories such as apparel, travel, and digital entertainment.<\/p>\n

In particular, online gaming and digital content have seen exponential growth in these regions, with spending increasing by 16X and 9X, respectively. This trend underscores the appetite for digital services beyond traditional metros.<\/p>\n

Government initiatives like the Pradhan Mantri Jan Dhan Yojna (PMJDY), Digital India, and the GST have been pivotal in driving financial inclusion and digital adoption across the country. Enhanced digital connectivity and the spread of affordable smartphones have further bolstered these efforts, bringing financial services closer to underserved regions.<\/p>\n

Despite the growth in digital payments, formal credit penetration remains a challenge in Cat B+ cities, where it was only 10.5% in 2019, compared to 42.4% in metros. Many consumers in these regions still rely on informal credit sources like moneylenders. This represents a significant opportunity for financial institutions to design tailored credit products that cater to these underserved yet aspirational segments.<\/p>\n

What Consumers Want<\/h4>\n

The Visa study identifies four pillars that non-metro consumers value in financial products:<\/p>\n