India’s progress in Digital Public Infrastructure and the India Stack has accelerated financial inclusion dramatically, achieving in six years what might have otherwise taken decades. Building on this momentum, women-led development has emerged as a crucial component of India’s strategy for sustainable growth, aligning with the goals of the Pradhan Mantri Jan Dhan Yojana (PMJDY). While PMJDY has provided millions of women access to formal finance, particularly in low-income and rural areas, enhancing their engagement with digital payments is the next critical step.
The UPI for Her initiative—a partnership between the National Payments Corporation of India (NPCI) and Women’s World Banking (WWB)—explores this potential, revealing that 200 million women in India are ready to adopt digital payments. The research identifies key insights into their motivations and barriers, providing a roadmap for financial service providers, fintech firms, and governments.
Key Insights and Personas
Two distinct personas emerge from the research:
- The Cautious Balancer: Women who own smartphones but hesitate to use digital payments due to concerns about security and control. They prefer cash for its perceived tangibility.
- The Fence Sitter: Women who are familiar with digital payments but have not fully embraced them due to inertia or lack of awareness about their benefits.
Two strategies are recommended to encourage adoption:
- UPI-Prepaid Payment Instruments (PPIs): A safe entry point for Cautious Balancers, providing control and security.
- UPI Merchant Offerings: For women-owned micro-businesses, showcasing the benefits of UPI to encourage adoption.
Strategies to Drive Adoption
- Promote Safety, Control, and Confidence: Build trust by emphasizing the security of digital payments and offering initial support through local women agents or community influencers.
- Simplify Onboarding and Ensure Transparency: Personal onboarding and clear communication about benefits and fees enhance women’s confidence and engagement with digital payments.
- Develop Relevant Products: Tailor digital products to meet women’s needs, such as adding cash-loading options and utility payments.
- Engage in Gender-Intentional Outreach: Partner with community-based organizations and train teams to be gender-sensitive.
- Provide Ongoing Support: Offer continued guidance, especially in the first three months, to ensure sustained use.
- Redefine Success Metrics: Focus on engagement metrics beyond onboarding, such as the number of transactions in the initial week.
Conclusion: Accelerating Women’s Digital Financial Inclusion
To maximize the impact of digital payments among women, it is essential to digitize wages, foster partnerships, promote financial literacy, and gather gender-disaggregated data. The “UPI for Her” initiative reveals a significant opportunity to drive financial inclusion and economic empowerment by addressing the specific needs and motivations of women. By implementing these strategies, stakeholders can build a more inclusive digital economy where women thrive.
UPI for Her is an initiative by NPCI and WWB aimed at increasing women’s participation in the digital payments ecosystem. With support from partners like MobiKwik, PhonePe, SpiceMoney, Uttar Pradesh State Rural Livelihood Mission (UPSRLM), and Mahila Arthik Vikas Mandal (MAVIM), this report sets the stage for gender-intentional actions at scale.
