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UPI to stay on top, digital currency to drive growth
April 18, 2022
Retail online transaction platform UPI will likely continue to dominate the digital payments space in the nation even as newer methods, for example, BNPL and digital currency are expected to define the future of payments, a review has said. Bound together Payments Interface (UPI), Buy Now Pay Later (BNPL), Central Bank Digital Currency (CBDC), and offline payments will drive the growth of digital payments in India in the next five years, PwC India said in a report.
UPI is expected to continue on being the major contributor in the digital payments space, followed by BNPL, it said.
The Indian digital payments market saw steady growth at a CAGR of 23% (volume-wise), and is expected to reach 217 billion (21,700 crores) transactions in FY26 from 59 billion (5,900 crores) in FY22, said the report named ‘The Indian Payments Handbook 2021-26’.
In 2020-21, UPI transactions arrived at a record 22 billion (2,200 crore), and it is normal to arrive at 169 billion (16,900 crores) by 2025-26, developing at a CAGR (compounded annual growth rate) of 122%, it said.
Partnership with different nations in Asia to enable low-value transactions and cross-border remittances through UPI will add to this development. BNPL, which is right now estimated at ₹363 billion (₹ 36,300 crores), is supposed to reach ₹3,191 billion (₹3,19,100 crore) before the end of 2025-26, according to the report.
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