72% women entrepreneurs use UPI, but only 37% invest in tech tools: Study

UPI adoption is rising among women entrepreneurs, but their digital finance journey is also expanding into credit, investments and tech

Digital finance is no longer limited to making payments for many Indian women.

 

Women entrepreneurs, in particular, are increasingly using digital platforms for business operations, credit access and investments. This marks a shift from basic transactions to wider financial management.

 

A new study by DBS Bank India, titled “Women and Finance: The Digital Opportunity – Access, Adoption and Trust,” shows that digital payment tools are the most widely used financial platforms among female entrepreneurs, with 84 per cent of respondents using them.

 

However, their digital engagement is expanding beyond payments — 38 per cent use loan and credit platforms, while 29 per cent use brokerage platforms for investments.

 

 

The study, conducted with Deloitte Touche Tohmatsu India LLP as the research partner, surveyed 1,342 women across India, including entrepreneurs, high-net-worth (HNW) and rural earners.

 

UPI becomes the common digital finance gateway

 

UPI remains the most widely adopted payment method across all groups surveyed, highlighting how India’s digital payments infrastructure has become a key entry point into formal financial services.

 

Among the respondents:

 

•      77 per cent of HNW women use UPI

 

•      72 per cent of female entrepreneurs use UPI

 

•      54 per cent of rural women earners use UPI

 

However, payment preferences differ by segment. While UPI dominates among urban women, rural women continue to rely significantly on cash.

 

The study found that cash remains the most used payment method among rural women earners at 77 per cent, followed by UPI at 54 per cent.

 

Among female entrepreneurs, debit cards are used by 42 per cent of respondents, while credit card usage stands at 36 per cent. For HNW women, credit cards are the second most-used payment method after UPI, with 53 per cent adoption.

 

Digital tools are becoming business management platforms

 

For women running businesses, digital adoption is moving beyond receiving payments. Entrepreneurs are using technology to manage operations, improve efficiency and access financial services.

 

Among female entrepreneurs surveyed:

 

•      65 per cent spend on staff salaries and contractor payments

 

•      53 per cent spend on digital marketing, branding, content creation and customer acquisition

 

•      37 per cent spend on software, technology tools and platforms

 

•      26 per cent allocate spending towards inventory and cost of goods sold

 

•      22 per cent spend on office or warehouse rent

 

This indicates that women-led businesses are increasingly investing in growth areas such as technology and customer acquisition rather than only meeting operational expenses.

 

Credit cards gain popularity among urban women

 

Credit cards are becoming a more common financial tool among urban women earners. Half of the female entrepreneurs surveyed use personal credit cards frequently, either daily or several times a week. Usage increases sharply among higher-income entrepreneurs.

 

Travel-related rewards are the most preferred credit card benefit among both female entrepreneurs and HNW women. Around 65 per cent of respondents in both groups selected benefits such as hotel offers, air miles, lounge access and travel insurance as their preferred rewards.

 

Rural women show gradual digital transition

 

The adoption journey is different for rural women earners. While digital payments are growing, many continue to operate in a hybrid system where cash and digital transactions coexist.

 

The study found that digital payment platforms are used by 48 per cent of rural women earners, while 42 per cent use bank apps or websites. Education plays an important role — digital payment adoption among graduates was 72 per cent, compared with 30 per cent among women educated up to the primary level.

 

Their spending priorities are also focused largely on business essentials:

 

•      82 per cent spend on raw materials

 

•      47 per cent spend on rent

 

•      35 per cent spend on transportation to markets

 

Trust and safety remain key challenges

 

Despite growing adoption, security concerns continue to influence how women use digital financial services.

 

For urban women, data privacy and security are among the biggest factors affecting digital finance usage. Around 62 per cent of female entrepreneurs and 60 per cent of HNW women consider these issues important.

 

Complex user interfaces also affect usage, according to 46 per cent of female entrepreneurs and 45 per cent of HNW women surveyed.

 

Digital fraud awareness is another important factor. The study found that 46 per cent of female entrepreneurs, 35 per cent of HNW women and 13 per cent of rural women earners reported experiencing digital fraud or financial scams either in the past year or earlier.

 

As women’s participation in entrepreneurship, investments and digital banking grows, the next phase of financial inclusion will depend not only on access to digital tools but also on trust, financial awareness and simpler platforms.