The growth for India’s digital payments has come on the back of multiple retail payment products launched including Bharat QR, Aadhaar Enabled Payment System, National Electronic Toll Collection, Bharat Bill Payment System, and Rupay Cards.
India’s growing digital payments market, which is marked by inflection points such as demonetization and UPI launch 2016 and now Covid pandemic, is likely to have a share of around 2.2 per cent in the world’s digital payments market by 2023, said consulting firm PwC and Payment Council of India in a report. The growth for India’s digital payments has come on the back of multiple retail payment products launched including Bharat QR, Aadhaar Enabled Payment System (AePS), National Electronic Toll Collection (NETC), Bharat Bill Payment System (BBPS), and Rupay Cards. The digital payments market globally, according to the report titled Empowering payments: Digital India on the path of revolution, is likely to hit $12.4-trillion mark in transaction value by 2025 up from $3.7 trillion in 2019.
While UPI grew from $928 million in FY17 to $117 billion in FY 2019 in transaction value, it is likely to further grow to $117 billion by FY 2023 at a CAGR of 228 per cent. In terms of volume, it is likely to scale from 5.35 billion in FY19 to 59.77 billion in FY23 at a CAGR of 287 per cent. “UPI, as proxy-based payments in India launched by the NPCI, has broken all records in the Indian payments industry. UPI transactions have been growing ever since its launch. UPI has been proven to be a masterpiece of NPCI, breaking the records year over year,” the report said. Similarly, BBPS transactions will grow at 436 per cent CAGR from $146 million in FY 2018 to $12.6 billion in FY 2023. Rupay Card transactions will also grow at 68 per cent from $15.7 billion in FY19 to $25.5 billion in FY23.
Source: Financial Express
