How women are redefining India’s digital payment economy
India’s digital economy has been marked by remarkable innovation and inclusivity over the past decade, but one of its most transformative shifts is now being driven by women. The latest How Urban India Pays 2025 report by Amazon Pay and Kearney reveals that women are emerging as the most dynamic cohort in India’s fintech landscape, redefining how digital payments are made, managed, and multiplied. Their growing participation marks not just a behavioural change but a significant economic inflection point—one that underscores the rising gender dividend in fintech.
Women and the digital shift
The report highlights that overall digital payment volumes surged by 35% in FY25 compared to the previous year, with women at the forefront of this adoption. Nearly 89% of women now prefer digital methods for online purchases, while digital payments for in-store transactions have grown from 48% in FY24 to 56% in FY25. This trend shows that digital spending among women is no longer confined to e-commerce; it is steadily extending into everyday purchases, ranging from groceries to local services.
Women are also increasingly taking charge of their financial decisions. According to the study, 57% of women are now actively managing their finances, reflecting a steady rise in digital confidence and control. This empowerment is closely linked to accessibility, as the ubiquity of UPI, digital wallets, and simplified payment interfaces has effectively bridged the gap between convenience and financial autonomy.
Entrepreneurs in the digital economy
Beyond personal spending, women entrepreneurs are playing a decisive role in shaping India’s fintech trajectory. The report finds that 80% of women-led businesses now rely on digital payment solutions to run their operations, with UPI emerging as the preferred mode of transaction for 34% of them. This data reflects more than a mere shift in tools—it represents how women are leveraging technology to unlock new pathways for entrepreneurship, growth, and inclusion.
The surge in women-led digital enterprises is also expanding fintech’s reach into new markets. As small businesses across tier-2 and tier-3 cities adopt digital payments, women entrepreneurs are emerging as both users and advocates of fintech solutions. This momentum aligns with India’s broader transition toward a more inclusive, tech-enabled MSME sector—one that relies on digital ecosystems to enhance visibility, manage transactions, and build trust with customers.
Financial independence and evolving preferences
One of the most striking findings from the report is the variation in payment preferences across income segments. Affluent women tend to favour credit cards, with 69% citing them as their preferred payment method, while middle-income women continue to prefer UPI and digital wallets for their ease of use and immediacy.
This divergence underscores a nuanced digital payment landscape—one in which fintech companies must design products tailored to different user needs rather than adopting a one-size-fits-all approach.
The growing comfort with digital finance also reflects women’s increasing control over household budgets and spending decisions. As financial literacy deepens and trust in digital platforms strengthens, women are not only using fintech for payments but are also adopting it as an entry point into broader financial services such as credit, savings, and insurance. This shift has far-reaching implications for fintech innovation, urging players to build products that resonate with women’s financial realities and long-term aspirations.
Expanding beyond metros
The How Urban India Pays 2025 report shows that digital adoption is no longer limited to metropolitan India. Digital payments for in-store purchases in smaller cities rose from 42% in FY24 to 50% in FY25, signalling a clear trend of diffusion. Within this growth story, women are increasingly becoming key agents of change.
This decentralisation of fintech adoption carries broader economic implications. As digital inclusion expands, women in smaller towns are likely to contribute significantly to digital commerce, particularly in sectors such as retail, education, healthcare, and local services. For fintech companies, this means the next wave of growth will come from designing for women beyond metros—through vernacular language support, low-data interfaces, and simplified onboarding processes.
Trust, rewards, and the confidence to transact
The report identifies key drivers behind the surge in digital adoption: 57% of users cited the widespread acceptance of digital payments, 45% pointed to trust, 44% mentioned faster transactions, and 41% valued better rewards. These factors hold particular significance for women, who often prioritise security, reliability, and transparency in financial transactions. As fintech players compete for user trust, they must focus on building experiences that are intuitive, inclusive, and secure. The data also points to a behavioural evolution. Women are not only comfortable transacting online but increasingly see value in digital ecosystems that reward their engagement. Reward-linked payments, cashback programmes, and loyalty integrations can therefore play a critical role in sustaining this upward growth trajectory.
The economic multiplier effect
The gender dividend in fintech extends far beyond the payment ecosystem. When women participate actively in the digital economy as consumers, earners, and entrepreneurs, the overall market expands. With transaction volumes growing at 35% year-on-year, women’s rising digital spending represents both an untapped opportunity and a powerful economic multiplier. It accelerates inclusion, enhances household financial resilience, and contributes to India’s GDP through formalised financial activity.
Women’s digital empowerment also complements government initiatives such as the Pradhan Mantri Gramin Digital Saksharta Abhiyan, which has trained over 6.3 crore rural citizens in digital literacy. Together, these developments are enabling a more balanced and inclusive fintech future—one where gender equity drives both innovation and impact.
The road ahead
As India moves toward a projected $7 trillion digital economy by 2030, the participation of women will be critical to sustaining momentum. The findings from How Urban India Pays 2025 suggest that fintech companies now have both an opportunity and a responsibility to build systems that reflect the diversity of their users. By prioritising simplicity, safety, and personalisation, the fintech industry can ensure that women remain at the heart of India’s digital transformation.
The gender dividend is real and rising. Women are not just using fintech—they are shaping it, redefining the contours of trust, access, and growth in India’s digital economy. The future of fintech will be more inclusive, more resilient, and undoubtedly more female.
(The author is the Head of Co-lending & Strategic Alliances, IIFL)
