In a country witnessing rapid growth, it comes as no surprise that India also has one of the fastest-growing fintech landscapes in the world, driven primarily by the advancement in the digital payments segment. Boston Consulting Group (BCG), in collaboration with PhonePe, India’s leading digital payments company, today unveiled a report titled, “Digital payments in India: A US$10 trillion opportunity”.
More about the Report
India’s digital payments landscape has witnessed phenomenal growth over the past five years. As per the report, India’s digital payments market is at an inflection point and is expected to increase more than threefold from the current US$3 trillion to US$10 trillion by 2026. As a result of this unprecedented growth, digital payments (non-cash) will constitute 2 out of 3 payment transactions by 2026.
The report also talks about how the digital payments ecosystem has been positively disrupted by the entry of multiple new players with diverse offerings driving digital payments adoption at scale. Leading global and Indian fintech players have been key drivers of UPI adoption in India among end users, aided by the buildout of a large QR-code-based merchant acceptance network, and further supported by user-friendly interfaces, innovative offerings, and an open API ecosystem.
Levers for further growth of digital payments in India as per Report
- Simplified customer onboarding
- Continued push for consumer awareness
- Expanding merchant acceptance
- Merchants getting greater access to credit
- Infrastructure upgrades and the setting up of a financial services marketplace driving growth in underpenetrated regions.
- It also talks about how IoT, 5G & CBDC will provide further impetus to growth.
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