National Tourism Day: Digital payments driving inclusive growth for domestic tourism in India – ET TravelWorld

India’s domestic tourism sector has begun the year with one of the most significant events in the country, the Maha Kumbh. With over 40 crore devotees visiting Prayagraj over 45 days, from India and around the world, this is easily one of the world’s largest spectacles.

India’s diverse culture and landscapes offer unique experiences and position the country as a key hub for both domestic and inbound tourism. In in 2023, domestic tourist visits grew by over 95% compared to 2014, surpassing 2.5 billion visits.

Over the past decade, India has solidified its position as the third-largest domestic aviation market, with domestic airline capacity seeing a 6.9% annual growth as of 2024. With improved infrastructure of highways, expanded air connectivity and more, travel across India is now easier and more accessible. This is catalysed by the rapid adoption of digital payments, that enhance the travel experience for millions of visitors with seamless, secure, and rewarding payment options.

A seamless payments experience is especially an important pull for international tourists who are accustomed to the convenience of friction-free ways to pay across other countries.

Role of digital payments in fuelling India’s tourism economy
Countrywide internet penetration has greatly facilitated accessible and widespread digitization, empowering even remote, rural communities to pay and accept payments digitally. Travellers can manage their trips efficiently, using digital payments for myriad services from booking flights, accommodation and transportation to tourist attractions, adventure or even hyperlocal stay experiences.

Safe and transparent digital payment solutions offer many conveniences, reducing the need for carrying local currency in cash and minimizing the risk of fraud and theft, making the Indian travel ecosystem more inclusive, accessible, and efficient. Consequently, digital payments have become an integral part of modern travel, creating better consumer experiences and memories and supporting the growth of the tourism sector.

Bespoke solutions such as co-branded cards also contribute to increased travel spends in the country. Visa, with its partners, has introduced co-branded cards that even provide exclusive, unique experiences, alongside mainstream benefits like discounts, cashbacks and rewards. These offerings make travel lucrative for the affluent as well as affordable for the budget-conscious traveller.

Role of Card Payments in Ensuring Security
Card payments offer multilayer, enhanced security with PCI-DSS and EMVCo certified features like fraud protection, tokenisation and chip-and-PIN technology, minimizing the risk of theft or fraud. However, consumers must also stay vigilant and be vigilant of emerging frauds and unauthorized transactions.

Credit and debit cards also offer additional protection like zero liability, fraud liability coverage and travel insurance so customers can make payments with greater confidence and ease. Travelers can enjoy the peace of mind that comes with secure card payments.

Building a Digital India: Enhancing Infrastructure and Connectivity
The Government’s initiatives such as Digital India have improved overall digital infrastructure with more Wi-Fi hotspots, ATMs, and POS terminals, making it easier for travellers to pay digitally even at local small shops. The RBI’s consumer awareness initiatives promote secure and trustworthy payment methods, enabling remote regions of India to participate in the broader digital economy.

Driving the Future: Digital Payments Paving the Way for Inclusive Travel in India
According to our latest Visa Consulting & Analytics Whitepaper, “Bridging the Gap: Payments in India Beyond Metros,” digital payment adoption is growing in non-metro regions exhibiting an astounding 175% growth in credit card spending over the last 5 years, (2019-2024). This indicates a more financially inclusive country.

In a growing economy as this, a connected travel ecosystem with seamless digital payments options would play a critical part in shaping the future of domestic travel in India.

Innovation in payments like biometric authentication and reduced use of static passwords are making it safer for travellers to use digital payments ubiquitously. Convenient options like tap to pay contactless methods can unlock the next phase of growth in India’s evolving domestic tourism landscape. Their increasing adoption through smartphones and wearables will make travel quicker, simpler and more accessible for consumers and local businesses, supporting the nation’s vision of a cashless, connected economy. As key stakeholders in the ecosystem, Visa recognises the critical role tourism plays in driving economic growth and fostering cultural exchange. We are proud to contribute to the development of a strong, resilient, and dynamic tourism sector in India, and remain dedicated to enabling seamless, secure, and inclusive travel experiences for all.

The author is the Head – Products, India and South Asia, Visa.

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