In a country where cash once reigned supreme, India’s digital payment revolution is quietly transforming the way people experience travel, especially in its most remote and untouched corners. From riverside camps in the Northeast to homestays nestled in
the Himalayas, the rise of UPI and other digital payment systems has opened new doors for travelers and small tourism operators alike.
While conversations around fintech often revolve around urban convenience and consumer tech, a lesser-told story is unfolding in the hills, forests, and valleys of India. It’s a story where financial technology is empowering offbeat travel and sustainable
tourism like never before.
The Digital Leap into India’s Travel Heartland
For decades, rural tourism in India remained a cash-first, often cash-only ecosystem. From tour guides and cab drivers to small homestay owners, a lack of digital payment infrastructure often created friction for travelers and limited income potential for
locals.
The Unified Payments Interface (UPI), launched by the National Payments Corporation of India in 2016, has changed that story dramatically.
According to NPCI data, UPI transactions crossed 13.3 billion in volume as of May 2025. What’s remarkable is the growing adoption beyond metros. In fact, rural and semi-urban India accounted for nearly 40% of all new UPI users in the last fiscal year. This
growth is thanks to QR-code accessibility, smartphone penetration, and government-led awareness initiatives.
Today, travelers can book camps, pay for local guides, and even grab chai at a hillside shack simply by scanning a QR code.
How Fintech Enables Sustainable & Responsible Tourism
Sustainable tourism isn’t just about preserving the environment. It’s also about empowering local communities. Digital payments are making that easier than ever.
No middlemen, more direct income: Small homestay owners and tour operators can now accept payments directly, cutting out commissions and intermediaries.
Cashless operations improve security and transparency: For both travelers and hosts, digital transactions reduce fraud, enable receipts, and build trust.
Frictionless microtransactions: Tourists can tip guides, pay for permits, or buy local crafts instantly, boosting local economies.
Access to micro-credit and financial products: With transaction history via UPI, small tourism businesses can become eligible for MSME loans and digital credit lines.
Offbeat Destinations Riding the Digital Wave
One of the regions leading this transformation is Northeast India, long known for its raw beauty but historically underserved in terms of travel infrastructure. Today, tourism hubs in Meghalaya, Ziro Valley, and Arunachal Pradesh are seeing a surge in cashless
bookings and QR-based transactions.
For example, platforms like
Encamp Adventures, which offer camping and accommodation experiences in remote North Indian destinations, have embraced digital payments as a core part of their booking process. This shift not only improves the guest experience but also
allows small-scale partners and hosts to operate more efficiently without the burden of cash handling.
This kind of digital-first, local-led travel model is what many experts see as the future of responsible tourism in India.
What This Means for the Fintech Ecosystem
For fintech innovators and ecosystem players, the intersection of travel and digital finance offers new ground for experimentation.
Embedded finance for travel: Insurance, BNPL, or even trip financing via digital platforms could further boost domestic travel.
Localized wallets and loyalty systems: Integrating digital payments with rewards for eco-conscious or offbeat travel behaviors.
Digital onboarding for micro-travel businesses: Helping homestays and tour guides build digital identities, access lending, and operate like SMEs.
Fintech is no longer limited to ride-hailing or airline bookings. The opportunity lies in empowering the long tail the countless local experiences that define travel in India.
Final Thoughts: Cashless, Sustainable, and Inclusive
As India steps into its digital decade, the fusion of fintech with grassroots tourism is shaping an inclusive and resilient travel ecosystem. Travelers can venture further, spend responsibly, and connect more deeply, all while enabling local communities
to thrive.
In this story, UPI is more than a payment mode. It’s a silent enabler of trust, access, and shared growth.
And perhaps that’s the most meaningful journey of all.
