Digital payments in India to account for 71% of all payments by 2025: report | Mint
Active Stocks
Mon Feb 26 2024 11:08:10
  1. Tata Steel share price
  2. 144.20 -0.89%
  1. Power Grid Corporation Of India share price
  2. 288.70 2.30%
  1. ITC share price
  2. 410.35 -0.30%
  1. State Bank Of India share price
  2. 756.70 -0.36%
  1. HDFC Bank share price
  2. 1,423.80 0.20%
Business News/ News / India/  Digital payments in India to account for 71% of all payments by 2025: report
BackBack

Digital payments in India to account for 71% of all payments by 2025: report

By 2024 the share of real time payments volume in overall electronic transactions will exceed 50%, according to the report

In 2020, transaction volume share in India stood at 15.6% and 22.9% for instant payments and other electronic payments, respectively. (Photo: iStock)Premium
In 2020, transaction volume share in India stood at 15.6% and 22.9% for instant payments and other electronic payments, respectively. (Photo: iStock)

MUMBAI: Digital payments in India are set to account for 71.7% of the total payments volume by 2025, leaving cash and cheques at 28.3%, according to a report by a US-based payment systems company ACI worldwide.

In 2020, transaction volume share in India stood at 15.6% and 22.9% for instant payments and other electronic payments, respectively, while paper-based payments had a considerable share of 61.4%, said the report, released on Wednesday.

By 2025, the share of volume by instant payments and other electronic payments, however, is expected to rise to 37.1% and 34.6% respectively, leaving the volume of paper-based transactions at 28.3%. Furthermore, by 2024 the share of real time payments volume in overall electronic transactions will exceed 50%, according to the report.

The report also said that by 2024 the share of real time payments volume in overall electronic transactions will exceed 50%.

“India’s journey of creating a digital financial infrastructure has been characterized by collaboration between the government, the regulator, banks and fintechs. This has helped to advance the country’s goal of enabling financial inclusion and also provided rapid payments digitization for citizens. The pandemic has further accelerated adoption of digital payments with many first time users adopting digital payments and significant uplift by merchants," said Kaushik Roy, VP and head of product management, Asia, ME and Africa, ACI Worldwide

India currently is at the top spot with 25.5 billion in real-time payments transactions, followed by China with 15.7 bn transactions.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Gopika Gopakumar
Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 31 Mar 2021, 05:56 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App