India’s payments system has been bolstered by the fact that it registered the highest number of real-time transactions in the world last year, with 48 billion. India surpassed China, which had 18 billion real-time transactions, and was 6.5 times larger than the United States, Canada, the United Kingdom, France, and Germany combined.
- This could be attributed to merchants’ increasing adoption and use of UPI-based mobile payment apps and QR code payments.
- The growth can also be attributed to the increased usage of digital payments during the Covid-19 outbreak, which enabled India’s real-time payments secure 31.3 percent of overall payment volume last year.
- Furthermore, India’s real-time payments share of total global payments volume is expected to exceed 70% by 2026, resulting in $92.4 billion in net savings for businesses and consumers.
- According to the Centre for Economics and Business Research, real-time payments saved Indian firms and consumers $12.6 billion in 2021, unlocking $16.4 billion in economic activity, or 0.56 percent of the country’s GDP or the output of about 2.5 million workers.
- According to Cebr, if all payments in India were made in real time, GDP might rise by 3.2 percent theoretically.