The ₹2-5 lakh annual income range represents a large segment of India’s middle class. People in this income group increasingly use UPI for convenience, affordability, and accessibility. UPI’s zero-cost transactions and simple interface match their financial priorities (i.e. savings and efficiency). Additionally, they rely heavily on UPI for small-ticket purchases, utility bills, and local business payments. The widespread smartphone adoption among this group also drives UPI's usage.
This group often exhibits high transaction frequency but lower average transaction values, making them an important demographic for Fintech growth. Understanding their behaviour helps providers optimize features like cashback, security, and personalized offers. Their growing reliance on digital payments highlights a shift from cash transactions to secure, contactless solutions. By looking at this this income range, UPI platforms contribute to promoting India’s transition toward a cashless economy.
