From Rupees to Bytes: The Rise of Digital Payments in India
India’s digital payment volume has experienced tremendous growth over the years, and it shows no signs of slowing down. According to the Reserve Bank of India, the total volume of digital transactions in India increased from ₹2326.02 crore in 2017 – 2018 to ₹7197.68 crore in 2021 – 2022, representing a growth rate of over 200%.
As the country continues to digitize, it is expected that the growth of digital payments will continue at a rapid pace in the coming years. A report by Statista projects that the digital payments market in India will reach a transaction value of ₹12.91 Trillion in 2023.
Several factors are expected to contribute to India’s continued growth in digital payments, including:
- Government initiatives: The Indian government has launched various initiatives to promote digital payments, such as the Digital India campaign and the Unified Payments Interface (UPI). These initiatives have helped to increase awareness and adoption of digital payments across the country.
- Rise of digital-first businesses: The proliferation of e-commerce platforms and digital-first businesses in India has helped to drive the growth of digital payments. These businesses have made it easier for consumers to make online purchases and pay bills digitally, thereby increasing the volume of digital transactions.
- Increase in smartphone penetration: India has seen a significant increase in smartphone penetration in recent years, with over 500 million smartphone users in the country. This has made it easier for consumers to access digital payment services and has contributed to the growth of the digital payments market.
- Financial inclusion: Digital payments have the potential to increase financial inclusion in India by providing a safe, secure, and affordable way for individuals to transact. This is particularly important in a country where a significant portion of the population is unbanked or underbanked.
Overall, India’s continued growth in digital payments is expected to have a positive impact on the country’s financial growth in the coming years. With more individuals and businesses adopting digital payment solutions, the cost of transactions is expected to decrease, and the economy is expected to become more efficient.
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