By 2025, digital transactions in India could be worth USD 1 trillion annually, with four out of every five transactions being made digitally. UPI (Unified Payments Interface) transactions are a key driver of greater financial inclusion, as the Indian payments ecosystem undergoes rapid digital transformation.
According to the report, mass adoption of e-payments and a thriving fintech scene, combined with regulatory policy, are set to propel India into a leading position in the global payments landscape.
A growing smartphone user base
The report estimates that India’s smartphone user base will likely double to 500 million by 2020. This will further help digitalize payments in the country, as affordable mobile devices will enable fraud-resistant digital transactions based on biometrics and multi-factor authorization, as well as an explosion of consumer services via mobile internet.
A USD 1 trillion market for digital transactions by 2025
Based on India’s current growth trajectory, the country could boast a USD 1 trillion market for digital transactions by 2025, with cash to non-cash ration reversing (4 out of 5 payments made digitally).
The current user base for digital transactions in India is close to 90 million, but could triple to 300 million by 2020 as the use cases for digital transactions grow and new users from rural and semi-urban areas enter the market.
The growth is accelerated by initiatives such as UPI (Unified Payments Interface) payments are driving greater interoperability between banks, independent of acquirer, payment provider or mobile app.
New technologies like Internet of Things will connect payments across multiple devices and the report estimates that by 2025, there will be around 30 billion connected devices in India.
Fraud remains a priority concern. The report shows that cyberattacks cost India an estimated USD 4 billion annually, and could rise to USD 20 billion by 2025, with the digitization of payments presenting new challenges for cybersecurity.
ACI has implemented a customized, UPI-enabled version of its UP Retail Payments solution, supporting the growth of UPI payments across India. AGSTLL, a long-standing strategic partner of ACI, is the first to bring the suite of hosted processing solutions and fraud monitoring to market.
To find out more about ACI Worldwide, visit our online payments company database for a complete profile with their services and offerings.
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