Survey suggests 2 out of 3 Indians face digital payment issues due to poor network connectivity

  • Two out of three Indians face problems when making digital payments due to poor network connectivity.
  • Overall, 9 out of 10 users in India reported network connectivity issues.
  • However, overall, average internet usage in India increased more than 10 times to 14.1 GB from 1.24 GB.

We’ve all fallen victim to digital payment issues at some point, from constantly loading UPI apps to waiting for merchant details to appear – that momentary anxiety about a payment failure has been a problem for a lot of us.

Now, a survey has put that into numbers. According to LocalCircles, two out of three Indian consumers using digital payments interrupted their transactions every month due to poor 3G and 4G connectivity. This is despite the fact that over 98% of India has 4G coverage.

Our reliance on the Internet has increased, especially after the COVID-19 pandemic, as consumers rely more on digital payment. Despite this increase, the survey revealed that nine out of ten mobile phone users in India complained of poor connectivity.

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Poor network connectivity amid a 10x increase in data usage

According to the survey, almost half of the 8,210 consumers mentioned that they face frequent interruptions in their mobile services due to poor network availability and low data speeds.

The survey also indicates that delays in online transactions have forced them to resort to other payment methods such as cash or credit and debit cards.

At the end of 2021, the Indian Internet user base crossed the 830 million mark. In 2021-22 alone, data usage grew sevenfold, according to the Economic Survey of India. Additionally, the report also states that the average internet usage increased from 1.24 GB per month in 2018 to 14.1 GB per month in 2021.

Telecom operators such as Bharti Airtel and Vodafone Idea have increased tariffs for prepaid and postpaid users. Reliance Jio and Vodafone Idea had increased their rates in 2021 by 20 to 25%. In addition, telecom operators could further increase their tariffs by 20-25% by the end of this year.

The LocalCircles survey highlights a huge gap in telecom services and the need for infrastructure investment to boost telecom services.

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