Digital Credit: A Growing Solution for Easing Paycheck-to-Paycheck Strain

Digital credit solutions are emerging as a practical financial tool for India’s salaried workforce, according to Piyush Bagaria, Co-founder of SalarySe. He noted that nearly 100 million salaried employees continue to struggle with limited savings despite stable monthly incomes.

Bagaria said the rise of digital payments has reshaped consumer behaviour, with UPI accounting for more than 80% of retail digital payments and projected to reach 91% by 2028–29.

In 2024, about one-third of domestic digital transactions involved credit, highlighting a shift toward credit-enabled spending.

He pointed to the growth of employment-linked credit models as a significant development.
These platforms use salary cycles and employer verification to determine credit access, offering terms aligned with predictable income patterns.

According to him, this structure lowers risk and supports more relevant borrowing and repayment options for salaried workers.

Bagaria added that integration with employers strengthens the credibility of these platforms and enables companies to offer financial wellness programmes that support employees’ financial stability.

AI-driven tools are also becoming part of these systems. Bagaria said they analyse income and spending data to offer tailored financial guidance, helping users plan better and anticipate cash requirements.

He highlighted a growing trend of platforms incorporating micro-savings features that divert small amounts into savings during repayment. This mechanism encourages consistent saving without requiring additional user intervention.

Bagaria stated that improved financial management through digital credit and related tools can contribute to reduced financial stress and better workplace outcomes, positioning digital credit as a viable support mechanism for salaried employees.