Over the past few years, the payment landscape in India has mirrored developments occurring in the global payments arena, albeit with a time lag. Although the digitisation of payments in India is a recent phenomenon, the trend has displayed an exponential growth in the sub-continent, with rapid growth being witnessed in digital payment transactions, says a recent Google-BCG report, Digital Payments 2020.
With a population of over 1.25 billion eager to partake in rapidly evolving advancements in technology, India is poised to make the most of digital developments transforming the payments space. Digital payments are expected to grow ten-fold to $500 billion in 2020 accounting for 15 per cent of India’s GDP, according to the report.
Digital payments are being driven by the rising penetration of smartphones, non-bank institutions offering payment solutions, customers demanding instantaneous solutions and changes in the regulatory framework.
Also the digital payments in India are not limited to being an urban and affluent phenomenon. Trends show that future adoption and growth of such services will be driven by the next set of low income users.