Today, India’s leading digital payments company, PhonePe, in collaboration with Boston Consulting Group (BCG), unveiled a report titled, “Digital payments in India: A $10 trillion opportunity”.
This collaboration brings a huge in India’s digital payment. 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 suggested about how the digital payments ecosystem has been completely disrupted by the entry of multiple new players with assorted 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.
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Karthik Raghupathy, Head of Strategy, and Investor Relations, PhonePe, said, “We are excited to partner with BCG to release Digital payments in India: A $10 trillion opportunity. The report is an in-depth commentary on the growth of digital payments in India and looks at factors and enablers that will help unlock the massive growth potential going forward. This report is part of the PhonePe Pulse initiative, which was launched last year, in our effort to give back to the Fintech ecosystem. PhonePe Pulse has been very well received by all the key stakeholders in the ecosystem and has emerged as India’s go-to destination for insights and trends on digital payment in the country.”
On the other hand, Prateek Roongta, Managing Director & Partner, Boston Consulting Group said, “India is set to become a digital payment economy as a source of payments invert with 65% transactions being done digitally by 2026, as opposed to 40% transactions today. Merchant payments will emerge as the most powerful driver of this growth, especially in the offline segment due to growing QR code deployments. We expect that merchant payments will soon outpace person-to-person fund transfers.”
