Unified Payments Interface drives one-third of insurance payments in India in FY 2025 | Asian Business Review
, India
/Stockimagefactory from Envato

Unified Payments Interface drives one-third of insurance payments in India in FY 2025

The rise is most notable in investment-cum-insurance products.

Digital payment preferences amongst Indian insurance buyers are shifting, with Unified Payments Interface (UPI) now accounting for over one-third of all insurance premium transactions, according to data from Policybazaar

The rise is most notable in investment-cum-insurance products, which saw UPI usage grow by more than 45% in FY25.

Health insurance premiums paid via UPI rose 34%, now making up 25% of payments in that category. In term insurance, UPI usage increased 25%, and it already accounts for 36% of premiums. 

Motor insurance, where UPI penetration is already the highest, saw a more modest 15% growth, with nearly 50% of transactions now routed through UPI.

Credit card payments have surged in high-ticket categories. Term insurance saw a 127% year-on-year rise in credit card usage, whilst investment-cum-insurance products jumped nearly 300%. 

This points to a shift towards payment methods offering flexibility and rewards. In contrast, debit card usage declined by 17% overall, with sharp drops in motor, term, and health insurance.

Net banking remains relevant, especially during tax season. Term and investment plans saw usage increases of 290% and 306%, respectively. Overall, net banking transactions nearly doubled.

Premium payment activity also spiked 15% from January to March, driven by tax-related purchases of term and investment-linked plans.

Monthly payment modes are gaining traction, particularly in health insurance, which saw a 307% jump. Investment-linked and term products followed with 99% and 72% increases, respectively, reflecting a preference for spreading costs over time.

Amongst non-resident Indians, credit cards remain the dominant method, particularly for health insurance, though there’s a slight increase in debit card usage—possibly due to easier onboarding or regulatory changes.
 

Follow the link for more news on

Join Asian Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Asia’s industrial giants take over the world
K-pop, anime, Bollywood, and Asian beauty trends have also gained global traction.
ASEAN should cut political risk to attract grid investors
The new chief of the ASEAN Centre for Energy expects a breakthrough this year.
SIT, Rolls-Royce launch $15.4m tech trial of hybrid vessel
The 34-metre ship will test tools that predict maintenance needs and improve fleet performance.