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UPI Transactions Responsible For Dying Toffee Business In India

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Remember the good old days when “chutta nahi hai” echoed at every corner store? Instead of a few coins, shopkeepers slyly dropped a handful of toffees into your shopping bag. These sugary stand-ins for change became a part of our daily lives—a small compromise, but one we accepted with a smile (and maybe with a slight grumble).

Now, enter UPI. With 16.73 billion transactions in December 2024, India’s digital payment revolution has quietly dismantled this quaint, candy-coated tradition. What was once a clever workaround for small change has been replaced by QR codes, leaving the toffee industry with an unexpected dilemma.

No Room For Loose Change

In just one month, UPI transactions surged by 8%, growing from 15.28 billion in November 2024 to 16.73 billion in December, according to the National Payments Corporation of India (NPCI). This leap isn’t just about numbers; it reflects a fundamental shift in how Indians shop and pay.

For decades, small stores—India has about 13 million Kirana outlets—used toffees as convenient substitutes for coins. But with digital payments ensuring precision, consumers no longer accept “change in kind.” The toffee, once the hero of the “chutta nahi hai” economy, has been sidelined by QR codes and UPI pins.

A Sweet Deal Gone Sour

Before the rise of digital payments, confectionery brands thrived on this unique arrangement. Small amounts—₹1 here, 50 paise there—added up to steady sales for giants like Nestle, Mondelez, and Parle. Shopkeepers unwittingly boosted their revenues by handing out candies instead of coins.

However, digital precision has disrupted this sweet equation. Hershey’s recently acknowledged that India’s evolving payment habits have hit impulse buys, making it one of their most challenging markets post-COVID. Similarly, a Nestle India executive pointed to muted demand in the FMCG sector, citing inflation and changing consumer behaviour as significant challenges.

It’s ironic how a payment system—not a rival brand—has upended the toffee business. With UPI, people pay the exact amount, eliminating the need for loose change. What was once a convenient exchange has now become obsolete.

This trend has been particularly tough on smaller confectionery players who relied heavily on Kirana stores. Reports suggest that while brands like Lotte have diversified, others are struggling to adapt to the shrinking demand for their bite-sized treats.


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The Nostalgia We’re Leaving Behind

For many, the toffee-for-change ritual wasn’t just a transaction—it was a memory. Children eagerly pocketed candies they couldn’t otherwise afford, and adults accepted them with a knowing smile. But as UPI becomes ubiquitous, these moments are vanishing.

While technology has undoubtedly made payments more efficient, it has also erased a slice of Indian life. The Mint report on declining FMCG sales highlights how changing payment habits are reshaping consumer behaviour in ways we never anticipated.

The fall of the toffee economy offers a stark lesson: even the most unexpected industries can be disrupted. Businesses that once thrived on cultural norms must now adapt to technological shifts. Toffee brands, for instance, could explore new markets, rebrand their products, or integrate themselves into digital-first retail strategies.

India’s 13 million Kirana stores have also learned to embrace digital payments, transforming their operations to keep pace with evolving consumer expectations. The question now is whether confectionery brands can do the same.

 From Sweet Compromises To Smart Payments

UPI hasn’t just revolutionised how Indians pay—it has fundamentally altered consumer behaviour, with ripple effects extending into unexpected sectors like confectionery. While the toffee economy may fade into history, its story serves as a reminder of how innovation reshapes our lives, often in bittersweet ways.

So, the next time you scan a QR code, spare a thought for the humble candy—a tiny casualty of progress, but one that sweetened our lives for decades.


Image Credits: Google Images

Sources: Live Mint, Money Control, Business Today

Find the blogger: Katyayani Joshi

This post is tagged under:digital payments, UPI growth, Indian economy, toffee business, technology disruption, FMCG trends, kirana stores, cashless India, NPCI statistics, consumer behavior, fintech revolution, small businesses, payment innovation, nostalgia marketing, cashless transactions, fintech India, changing habits, candy industry, retail transformation

Disclaimer: We do not hold any right, or copyright over any of the images used, these have been taken from Google. In case of credits or removal, the owner may kindly mail us.


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Katyayani Joshi
Katyayani Joshihttps://edtimes.in/
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