Even before the pandemic, India had experienced a tremendous push in the digital payments area. Now, the stage is set for it to soar even higher.
In the last 18 months, India’s digital transactions have shifted dramatically. The ongoing convergence of several variables, including the pandemic, increased technological use, and India’s desire for stronger digital initiatives, has resulted in a significant increase in digital transactions. Consumers in India now have access to a variety of e-wallets, Unstructured Supplementary Service Data (USSD) services, United Payments Interface (UPI) systems, and other e-payment options.
After witnessing technical breakthroughs, the incursion of new fintech businesses, and forward-looking legislative adjustments, the digital payments market has also been infused with new life.
Cashless on consumer minds
More than 60% of people in the United Arab Emirates (63%), Malaysia (65%), and Indonesia (63%) would welcome their countries’ shift to purely electronic payments. Surprisingly, only 24% of Americans feel that fully eliminating cash will benefit their country. Big technologies have been drawn to the digital payments market, according to PWC, since it represents a USD 3.6 trillion potential.
World leader in digital payments?
For the next five years, India’s real-time payments market will grow at a rate of 23.4% each year. Simultaneously, the volume of transactions is predicted to rise from 15.3 billion today to 52.8 billion in the future. Consumers are currently looking for convenient digital payment options like UPI, prepaid cards, BharatQR code, FASTag, and others.
Even before the pandemic, India had experienced a tremendous push in the digital payments area. Big internet corporations are likely to extend their influence in the Indian payments sector, according to PWC. Most Big Techs are leveraging their existing customer base and behavioural data accumulated over time to offer better payment solutions. These developments show that India has a lot of potential to become a global leader in digital payments and go cashless shortly.