Digital payments in India projected to attain $10 trillion by 2026: PhonePe Pulse and BCG initiate file on digital payments USA

Highlights of the file:

• Label of digital payments in India to magnify three-fold from US$3 trillion at the new time to US$10 trillion by 2026
• Digital payments will constitute virtually 65% of all payments by 2026, up from 40% at the new time
• UPI adoption will surge from 35% in FY 21 to 75% in the next 5 years
• 7x growth in digital carrier provider payments – from US$ 0.3-0.4 trillion at the new time to US$ 2.5-2.7 trillion by 2026

BENGALURU, India, June 3, 2022 /PRNewswire/ — PhonePe, India’s leading digital payments company, in collaboration with  Boston Consulting Neighborhood (BCG), at the new time unveiled a file titled, “Digital payments in India: A $10 trillion quite so a lot of”. The file leverages BCG’s industry trip in payments and the fintech domain, alongside with PhonePe’s deep insights and trip as the market leader in Indian digital payments and its intensive Pulse database to peek at prime digital payments trends in India.

India’s digital payments landscape has witnessed a exquisite growth over the past 5 years. As per the file, India’s digital payments market is at an inflection level and is anticipated to magnify more than threefold from the contemporary US$3 trillion to US$10 trillion by 2026. On memoir of this unparalleled growth, digital payments (non-cash) will constitute 2 out of three price transactions by 2026.

The file additionally talks about how the digital payments ecosystem has been positively disrupted by the entry of just a few contemporary gamers with various offerings utilizing digital payments adoption at scale. Leading world and Indian fintech gamers had been key drivers of UPI adoption in India among dwell users, aided by buildout of a expansive QR-code based entirely carrier provider acceptance community, and extra supported by user-friendly interfaces, progressive offerings and an launch API ecosystem.

The file goes on to list the levers for extra growth of digital payments in India which consist of – simplified customer onboarding, continued push for particular person consciousness, expanding carrier provider acceptance, retailers getting elevated access to credit, infrastructure upgrades and the developing of a monetary products and companies marketplace utilizing growth in underpenetrated regions. It additionally talks about how IoT, 5G & CBDC will present extra impetus to growth.

Commenting on the initiate, Karthik Raghupathy, Head of Approach, and Investor Family, PhonePe, acknowledged, ”We are furious to accomplice with BCG to initiate Digital payments in India: A $10 trillion quite so a lot of. The file is an in-depth commentary on the growth of digital payments in India and appears to be like at elements and enablers that can attend free up the enormous growth likely going forward. This file is part of the PhonePe Pulse initiative, which used to be launched final year, in our effort to provide aid to the Fintech ecosystem. PhonePe Pulse has been thoroughly bought by the complete key stakeholders in the ecosystem and has emerged as India’s scramble to destination for insights and trends on digital price in the country.

Karthik extra added, “‘As India’s greatest Fintech platform we bag seen the growth of UPI over the previous couple of years. UPI has supercharged India’s transition to non-cash payments in phrases of every particular person-to-particular person (P2P) and particular person-to-carrier provider (P2M) transactions. Not surprisingly, UPI saw about 9x transaction volume magnify prior to now 3 years, rising from 5 billion transactions in FY19 to about 46 billion transactions in FY22: accounting for more than 60% non-cash transaction volumes in FY22. This means that digital price has surely obtained ubiquitous acceptance across the country. Whereas Tier 1-2 cities bag witnessed excessive acceptance of digital payments, penetration in Tier 3-6 cities reveals headroom for growth. The next wave of growth will now attain from Tier 3-6 areas, as evidenced prior to now two years whereby Tier 3-6 cities bag contributed to virtually 60-70% of fresh customers for PhonePe.”

Prateek Roongta, Managing Director & Partner, Boston Consulting Neighborhood acknowledged, “India is determined to become a digital price economy as source of payments invert with 65% transactions being performed digitally by 2026, as in opposition to 40% transactions at the new time. Merchant payments will emerge as primarily the most highly effective driver of this growth, especially in the offline section as a result of increasing QR code deployments. We ask that carrier provider payments will soon outpace particular person-to-particular person fund transfers.”

Prateek extra added, “We are able to more and more survey digital payments derive embedded in all kinds of commerce, we can additionally impress the event from embedded payments to embedded finance. As more and more retailers launch as a lot as accept digital payments, this would possibly occasionally free up a vital replace in access to credit for miniature retailers as a result of the creation of a digital transaction trot.”

To download the file, discuss to:  pulse.phonepe.com or https://www.bcg.com/en-in/publications/2022/future-of-digital-payments-in-india 

About PhonePe: 

Based in December 2015, PhonePe has become a homegrown success chronicle, with its meteoric growth powered by India’s rising digital ecosystem, in particular in the Unified Payments Interface (UPI) home. The company builds products and offerings tailored for the Indian market and has emerged as India’s greatest payments app, enabling digital inclusion for shoppers and retailers alike. With 380 million registered users, one in four Indians are surely on PhonePe. The company has additionally efficiently digitized over 30 million offline retailers unfold across Tier 2,3,4 and beyond, covering 99% pin codes in the country. PhonePe is proud to attend lead India’s country-huge digitization efforts and believes that this highly effective public-non-public collaboration has made the Indian digital ecosystem a world exemplar.

About PhonePe Pulse – Developments and insights on digital payments in India:

To demystify recordsdata on the Indian digital payments landscape and to bag the ability to provide aid to the ecosystem, PhonePe Pulse used to be launched in September 2021. Pulse is a contemporary interactive platform that is India’s scramble-to destination for honest and comprehensive recordsdata on digital price trends. As the market leader in Indian digital payments, PhonePe’s recordsdata is guide of the country’s price habits. With its rich repository of trends, insights, and in-depth prognosis, Pulse showcases India’s beat of development in the digital price landscape. 

About Boston Consulting Neighborhood (BCG):

Boston Consulting Neighborhood partners with leaders in alternate and society to style out their most crucial challenges and take their supreme opportunities. BCG used to be the pioneer in alternate strategy when it used to be based in 1963. This present day, we work closely with prospects to embrace a transformational come geared toward benefiting all stakeholders—empowering organizations to develop, develop sustainable competitive advantage, and power certain societal affect. Our various, world teams bring deep industry and purposeful trip and various views that put a query to the gap quo and spark replace. BCG delivers solutions thru leading-edge administration consulting, know-how and form, and company and digital ventures. We work in a uniquely collaborative mannequin across the firm and at some level of all stages of the client group, fuelled by the function of serving to our prospects thrive and enabling them to function the field a greater space.

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SOURCE PhonePe