Digital payments to see threefold rise in India over next five years
A recently released report by the global consulting firm PwC predicts that digital payment transactions in India will more than triple over the next five years. As per the report, digital payment volumes are estimated to grow from around 159 billion transactions in the financial year 2023-24 to approximately 481 billion by 2028-29.
In terms of monetary value, PwC estimates digital transactions will rise from Rs. 265 trillion currently to Rs. 593 trillion by 2028-29. This projected growth underscores the rapid adoption of digital modes of payment that continue gaining traction across both urban and rural India.
As per the findings, Unified Payments Interface or UPI has emerged as the preferred payment method for many Indians. UPI transaction volumes recorded a year-on-year increase of 57% in the last fiscal year, with over 131 billion transactions processed. Going forward, UPI transactions are expected to reach around 439 billion by 2028-29 and dominate over 80% of the overall retail digital payments market in India.
Credit and debit card usage also continues growing, with credit card volumes expected to hit the 200 million mark over the next five years. New products and target customer segments are seen augmenting credit card growth further. Meanwhile, debit card transactions witnessed a dip relatively as users increasingly opt for UPI and other digital modes.
The steady expansion of India's digital payment infrastructure and continued innovation by fintech players bode well for further increasing Financial inclusion across all strata of society over the coming years. With digital becoming a way of life, the sheer size of India's digital transaction base highlights both its global leadership and immense potential.
