67% pay via UPI, 90% use WhatsApp in smaller cities for purchases: Report

Spending in Tier-II, III markets based on 'deep research and values consistency over hype'

Most Indians living in smaller cities use digital platforms like Unified Payments Interface (UPI) and WhatsApp for their purchasing decisions, but they “research deeply and value consistency over hype”, according to a survey by early-stage venture capital firm Rukam Capital.

 

The report, “Beyond Metros, The Real Story of Bharat’s Next 500 Million”, took inputs from more than 5,000 respondents in Tier-II and Tier-III cities across 18 states. Conducted for Rukam Capital by YouGov, it found that 90 per cent of non-metro consumers use WhatsApp as their primary digital platform, “blurring the line between communication and product discovery”. UPI is the default payment method for 67 per cent of consumers in such cities.

 

Brand discovery in smaller cities has shifted away from traditional advertising towards evidence and peer-led validation, according to the report. Its other points are:

 

About 37 per cent of consumers rely on YouTube reviews before making purchases.

 

Nearly one-third of consumers discover products through social media.

 

Around 35 per cent use ecommerce platforms for research before deciding to purchase a product.

 

About 23 per cent of consumers trust recommendations from digital creators, while celebrity influence has fallen sharply to around 3 per cent.

 

Trust drives purchase decisions

 

Trust has emerged as the most important currency for Indian consumers, the report said. “Word-of-mouth” influences around 22 per cent of buyers in Tier-II and Tier-III cities. Many consumers also verify brands independently before spending.

 

Around 43 per cent of respondents in Tier-III towns check official brand websites, while 32 per cent consider customer service interactions as part of their decision-making. Awareness around safety, ingredients and sustainability is also rising, with nearly a quarter of consumers influenced by eco-friendly claims when these are backed by peer reassurance.

 

“For a long time, Bharat has been viewed through a metro lens,” said Archana Jahagirdar, founder and managing partner at Rukam Capital. The study shows “a far more confident and deliberate consumer, one who researches deeply, relies on community validation, and values consistency over hype”, she said, adding that brands need to build trust early and design for real-life use cases.

 

While over half of Tier-II consumers track discounts and sale days, festival-led spending remains more important in Tier-III markets. Quick commerce adoption is still limited, at about 36 per cent in Tier 3 towns, suggesting that instant gratification has not yet become mainstream.

 

WhatsApp acts as India’s digital backbone, the study notes, while OTT viewing is shaped by mass content and language preference. JioHotstar leads usage across non-metro markets, and nearly one in four Tier-III users prefer vernacular OTT platforms.