Unified Payments Interface (UPI) and credit cards have emerged as the two most popular payment modes used by consumers while paying for their insurance premiums, according to data analysed by insurance marketplace Policybazaar.
PB Fintech-run Policybazaar said health, term and motor insurance products have seen the highest adoption of UPI payments in the last one year. Motor insurance purchases already had more than 50% of payments going via UPI. For health insurance, the share of UPI payments stood at 25%.
Policybazaar is the largest insurance marketplace in India. The Gurugram-based company processed Rs 23,486 crore in insurance premiums in FY2025. The publicly listed firm currently has a market capitalisation of Rs 79,274 crore. It closed FY25 with a total revenue of Rs 4,977 crore and a net profit of Rs 353 crore.
Credit cards have emerged as the most popular payment method for term insurance products and insurance-cum-savings products, where the ticket size might be on the higher side.
“This suggests a behavioural shift that customers are actively choosing credit cards to tap into rewards and financial flexibility. While UPI grows here too, the dramatic rise in credit cards signals a calculated, desktop-driven purchase behaviour,” said Harsh Vardhan Masta, head of payments at Policybazaar.
Among all the payment modes, debit cards have shown a 17% decline in usage year-on-year (YoY) for all kinds of insurance purchases. The trend shows that consumers mostly try to use their credit cards for large purchases, or if they are paying from their bank accounts, prefer UPI over debit cards.
Interestingly, the usage of net banking has continued to grow, even when cards and mobile payments have taken off. Overall usage of netbanking for these payments has doubled in the last one year, data shows.
While debit cards might have lost favour in India, for Indians settled outside the country, cards continue to be the most popular payment mode. According to FY25 data, credit cards had a 57% share of the payments and debit cards, 42%.
Also Read: Listed fintechs feel the pinch of lenders going slow on unsecured lending
PB Fintech-run Policybazaar said health, term and motor insurance products have seen the highest adoption of UPI payments in the last one year. Motor insurance purchases already had more than 50% of payments going via UPI. For health insurance, the share of UPI payments stood at 25%.
Policybazaar is the largest insurance marketplace in India. The Gurugram-based company processed Rs 23,486 crore in insurance premiums in FY2025. The publicly listed firm currently has a market capitalisation of Rs 79,274 crore. It closed FY25 with a total revenue of Rs 4,977 crore and a net profit of Rs 353 crore.
Credit cards have emerged as the most popular payment method for term insurance products and insurance-cum-savings products, where the ticket size might be on the higher side.
“This suggests a behavioural shift that customers are actively choosing credit cards to tap into rewards and financial flexibility. While UPI grows here too, the dramatic rise in credit cards signals a calculated, desktop-driven purchase behaviour,” said Harsh Vardhan Masta, head of payments at Policybazaar.
Among all the payment modes, debit cards have shown a 17% decline in usage year-on-year (YoY) for all kinds of insurance purchases. The trend shows that consumers mostly try to use their credit cards for large purchases, or if they are paying from their bank accounts, prefer UPI over debit cards.
Interestingly, the usage of net banking has continued to grow, even when cards and mobile payments have taken off. Overall usage of netbanking for these payments has doubled in the last one year, data shows.
While debit cards might have lost favour in India, for Indians settled outside the country, cards continue to be the most popular payment mode. According to FY25 data, credit cards had a 57% share of the payments and debit cards, 42%.
Also Read: Listed fintechs feel the pinch of lenders going slow on unsecured lending
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