New Delhi: More than 40 per cent of consumers in Tier 3 to 6 cities use digital payment on a daily basis, while 45 per cent claimed to use it once in two days, a new survey report has said.

“This reflects the frequent usage of digital payments by consumers, even in Tier 3 to 6 locations of the country,” said a report by Chase India on The State of Digital Payments in India.

The report identifies the key challenges faced by merchants and consumers in the adoption of digital payment services at the grassroots level.

According to the report, nearly half of the merchants who are not using digital payments in rural India are unaware of the service.

In contrast, a staggering 94 per cent of consumers who are not using digital payments are aware of it but still don’t use it, as they face issues like lack of internet connectivity, limited knowledge, mistrust in online payments and service-related problems.

The report added that around 74 per cent of consumers claimed to be using digital payment services for a transaction a family member made.