Studying the Differences in Digital Transaction Adoption Rates Among the Poorest and the Rich in India

This paper investigates differences in digital transaction adoption across wealth groups in India, using data from the 80th National Sample Survey (CMST). The study identifies substantial disparities in smartphone access, internet usage, digital skills, and online banking capabilities between the poorest and richest households. In addition to income-based differences, the analysis highlights persistent gender disparities in digital financial participation.
The findings are interpreted through the lens of overlapping structural disadvantage, where income inequality and gender-based barriers interact to shape digital access and usage. While financial inclusion policies have expanded bank account ownership, they have not translated into equitable digital participation. The results indicate that recent growth in digital payments has disproportionately benefited wealthier and male populations.
The paper concludes that improving digital inclusion in India requires policy interventions that simultaneously address affordability, digital literacy, and gender-based constraints.