Despite the massive surge in UPI transactions across India, a new study highlights a significant gender gap. Access to technology alone is not solving the problem of financial exclusion for women.

  • UPI adoption among women is hindered by trust, social norms, and financial control issues.
  • Smartphone access does not automatically equate to digital financial literacy.
  • The study covered over 40,000 women across Telangana and Andhra Pradesh.
  • IVR-based systems like 123PAY offer a potential solution for non-smartphone users.

While India celebrates its global leadership in real-time digital payments, a significant portion of its female population remains on the periphery of this revolution. A comprehensive study by the Hyderabad-based NGO Yugantar, published in CSI Transactions on ICT, reveals that the rapid expansion of the Unified Payments Interface (UPI) has not been gender-neutral.

The Human Element: Beyond Hardware

The research highlights that the digital divide is not merely a matter of owning a smartphone. In the bustling streets of Hyderabad, women like Pujari Lakshmi run businesses equipped with QR codes, yet they remain dependent on male family members to execute transactions. The fear of making errors—such as sending money to the wrong account—acts as a profound psychological barrier. This suggests that digital inclusion requires more than just distributing hardware; it requires building digital confidence.

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BozokMedia analysis shows that women's relationship with UPI can be categorized into three distinct trajectories: active users (typically younger and more educated), those facing structural barriers, and those who actively reject the technology to maintain or protect their financial control strategies within the household.

True financial inclusion is achieved when technology empowers the user's autonomy rather than just providing a tool for transaction.

Structural Barriers and Technological Solutions

The scale of the disparity is striking. While the Ministry of Finance reported that digital payment transactions grew from ₹8,839 crore in 2021-22 to ₹18,737 crore in 2023-24, the benefits are not reaching marginalized women equally. The study notes that even in households where 70% of women have bank accounts, fewer than 10% actually perform digital transfers.

To bridge this gap, the Digital Budget Rani programme introduced 123PAY, an IVR-based system. This interactive voice response technology allows users to make payments without navigating complex smartphone apps, making it a vital tool for women in rural and semi-urban areas who may find app interfaces intimidating.

Did You Know?: UPI's share in India's total digital payments skyrocketed from 17% in 2018-19 to approximately 70% in 2023-24.

Historical Context of Digital Payments in India

Since its inception, UPI has transformed India from a cash-heavy economy to a global digital powerhouse. From street vendors to international dignitaries like French President Emmanuel Macron, the technology is everywhere. However, as this study cautions, the journey from 'onboarding' to 'regular usage' remains a critical hurdle for women in the informal sector.

Frequently Asked Questions

1. Why do many women avoid using UPI apps?
The primary reasons include a lack of confidence in navigating the technology, fear of financial loss due to errors, and social norms regarding financial control.

2. How does 123PAY help in digital inclusion?
123PAY uses voice-based IVR technology, allowing users to make digital payments through simple phone calls, bypassing the need for complex smartphone applications.