Digital payments market in India will more than triple to $10 trillion

In A country that is experiencing rapid growth is no surprise. India It also boasts one of the most rapidly-growing fintech ecosystems in the world. This is due to the rapid growth in digital payments. PhonePe recently released a report. Boston Consulting Group Conclusion: India’s Digital payments market will triple to $3 trillion to $10 Trillion by 2026.

In 2015, The Indian Government launched its Digital India One of the goals is to create a program. “faceless, paperless and cashless” Status for financial transactions at the grass-roots level

In This is why digital payments continue to be promoted in order for every citizen to have access. digital payment Secure, cost-effective and convenient facilities The Innovative reforms and technological advancements are further increasing growth at an unimaginable pace.

When One can think of digital payments. UPI – India’s Payment Gateway – It’s what comes to your mind immediately The Unified Payments Interface (UPI), has been the flag bearer of India’s The fintech revolution was launched by the in 2016. National Payments Corporation This is India (NPCI).

The UPI allows instant real-time transactions between interbanks through mobile devices.

In It took just six years to complete the project. IndiaThe world’s largest cash-based economy is now a leader in digital real-time payments. It accounts for nearly 40% of all transactions.

The The COVID-19 pandemic saw widespread adoption of UPI in cities and rural areas. IndiaThe effect was so amazing that even experts were left in awe.As As the UPI’s popularity grows, so does its acceptance by other countries. February 21, 2023, India Singapore Cross-border connectivity was launched between UPI in the United States and UPI’s equivalent in the United Kingdom. Singapore PayNowIt allows cross-border transactions to be performed at a lower cost and quicker pace.

This The initiative is closely related to the India’s G20 Financial Inclusion Priorities of Driving Faster, Cheaper, and More Transparent Cross-Border Payments It Also, there was interest from Latin American Countries can use the system in their own countries or a similar one.

Along The coming together of all the Jan Dhan-Aadhaar-Mobile (JAM) Trinity Financial inclusion is further encouraged by this. India Like never before The Pradhan Mantri Jan-Dhan Yojana The bank account will be available to those who are not currently banking. Aadhaar — The flagship product Unique Identification Authority This is IndiaThis is a quick and easy way to verify beneficiaries and individuals based on biometric information.

These Two programmes are in close connection with each other. The The numbers that reflect the success of these programs are a clear indicator of their effectiveness — the Jan-Dhan Yojana Initiative has resulted in the opening of over 460 million bank account and almost 99 percent of the accounts being reopened. Indian Now, the population is an Aadhaar number.

Now, a leader in the fintech industry, India In terms of disrupting traditional financial service providers, it does not seem like it is slowing down. Reflecting This is India’s Finance Minister Nirmala Sitharaman’s An announcement by the central banking at the Union Budget 2022-2023.

The Reserve Bank This is IndiaThe digital rupee’s design options and implications are highlighted in the latest concept note from’s (RBI). In December 2022 saw the RBI announce the launch of the pilot program for the retail digital rupee. This pilot will evaluate the reliability of the entire process of creating, distributing, and using digital rupees in retail. Different Based on the information gained from the previous pilot phase, future phases will see the testing of features and architectures of the eRsR token.

In In addition, National Electronic Toll Collection The (NETC) system also has seen significant growth. With The FASTag is now mandatory on all four-wheeler cars in the country. Digital payments are already being received and will likely increase. The NETC is available at least 429 toll points across the country. More than 36 million FASTags were issued so far.

The Provider of utility services Bharat Bill Payment System (BBPS) offers customers online and on-ground bill payments services. These Include the payment of utility bills, such as electricity, gas, or water.

Government Initiatives to improve infrastructure, especially in rural areas, will result in an increase of households having electricity and water supply. This will add more demand for telecom connections and BBPS users.

As According to a PwC report by 2025-2026 new biller categories will reach an estimated value $14.5 billion. Existing categories will still account for the majority of transaction value at $27 billion.

While The vast majority of these payment options work online, but geographical and internet connectivity issues can hinder their growth.

Realising This is why fintech companies are looking into offline payments. For instance, India’s largest private-sector lender HDFC Bank Is attempting to make offline digital payments under the RBI’s. Regulatory Sandbox programme.

If This could change the digital payment landscape in a major way and allow for financial inclusion in areas where internet connectivity is not available. Hunt Daily News