Amid Covid, India was home to the highest number of real-time online transactions in 2020 ahead of countries like China and the United States. 25.5 billion real-time payment transactions were processed in the country, followed by 15.7 billion in China, 6 billion in South Korea, 5.2 billion in Thailand and 2.8 billion in the United Kingdom. Among the top 10 countries, the United States ranked ninth with 1.2 billion transactions. The share of transaction volume for instant payments in India, among real-time transactions, was 15.6% and 22.9% for other electronic payments in 2020, according to a report by the UK payment systems company. ACI Worldwide payment. It is important to note that paper-based payments continued to account for a hefty 61.4 percent share in India.
However, this is expected to change by 2025, as volume shares for instant payments and other electronic payments are expected to increase to 37.1% and 34.6% respectively. As a result, the share of paper transactions would contract to 28.3%. In addition, the share of real-time payments volume in global electronic transactions will exceed 50% by 2024. “India’s journey to create digital financial infrastructure has been characterized by collaboration between government, regulator , banks and fintechs. This has helped advance the country’s goal of enabling financial inclusion and has also enabled rapid digitization of payments for citizens, ”said Kaushik Roy, vice president and chief product officer, Asia, ME and Africa, ACI Worldwide in a press release.
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The Indian digital payments market, led by Paytm, PhonePe, Pine Labs, Razorpay, BharatPe and others on the B2C and B2B side, has exploded during the pandemic, although incentives such as cash backs, rewards and deals have helped businesses attract more customers. In addition, policy frameworks such as Prepaid Instruments (PPI), Universal Payment Interface (UPI) by the NPCI outside Aadhar and the launch of the BHIM app have promoted financial inclusion and improved performance. payment acceptance infrastructure in the country. for a few years.
According to another report by the Indian Private Equity and Venture Capital Association (IVCA) and Ernst & Young, digital payments in India are expected to increase by 27% CAGR in the period FY20-25 from Rs 2,153 transactions to lakh crore in FY20 to Rs. 7,092 lakh crore in FY25. UPI transaction value grew 18.7% per month to Rs 5.05 lakh crore in March 2021 compared to Rs 4.25 lakh crore in February 2021, while transaction volume increased by 19 % to 2,731.68 million from 2,292.90 million in the said period, according to data released by the National Payments Corporation of India (NPCI).