2.2% of Digital Payment Market will be contributed by India by 2023: PwC Report

A study conducted by the Payments Council of India and management consulting group PricewaterhouseCoopers has estimated that around 2.2% of the world’s digital payments market will be controlled by India by the year 2023 and the financial value of such transactions should reach $12.4 trillion globally by the year 2025.

The report, titled as ‘Empowering Payment: Digital India on the path of revolution’, released at the Virtual Global Fintech Fest 2020 also pointed out that home-grown Indian innovation around digital payments infrastructure including Unified Payments Interface, Bharat QR and mobile wallets have now become very much crucial for the last-mile connectivity, covering the small traders as well.

The report has estimated that the UPI payments will reach nearly 59 billion in volume by the year 2023 because of its high percentage of peer-to-peer kind of transaction penetration. The population and demographics of the country are only contributing to this phenomenal growth of digital payments in India.

Apart from the initiatives, the surge in digital payments can be attributed to regulation of costs of payment systems, laws in place, availability of alternate payment systems, the share of electronic payment gateways and obviously the impact of the COVID 19 Pandemic.

The report has also appreciated the proactive steps taken by the government in India to promote digital payments.

Month: Current Affairs - July, 2020