With the rise in usage of digital modes of transactions and the growing market of digital payment services, India is likely to contribute around 2.2 per cent to the sector by 2023, said a report by the Payments Council of India and PWC. The report titled 'Empowering payments: Digital India on the path of revolution' said that with global transaction value for digital payments expected to reach $12.4 trillion by 2025, India is expected to contribute 2.2 per cent of the world's digital payment market by 2023 alone.
Underlining UPI is among the largest real-time payment systems in the world, the report estimates the home-grown platform to reach nearly 59 billion transactions in volume by 2023, owing to its high P2P type of transaction penetration.
"Clocking over 1 billion transactions every month, the platform has witnessed a CAGR of 785 per cent in volume and 570 per cent in terms of value from financial year FY 2017 to FY 2020," it said. As per the report, India is one of the fastest-growing countries in the world, showing rapid progression in the transformation of digital payments, largely due to its large population and demographics.
It has been attracting significant investments from private equity and venture capital firms and other international payment companies that want to enter India in the near future. According to the report, India has been identified as a leader across parameters -- regulation of costs of payment systems, laws in place, availability of alternate payment systems, the share of e-money in payment systems among others.
With the sharp rise in demand for contactless payments increasing amid the pandemic, businesses are looking at integrating their online and offline channels to provide an omnichannel experience to its customers. From the statistics of UPI, BBPS and NETC for the months of February to June 2020, the report suggested that a V-shaped recovery in the digital payment sector is being prompted.