The RBI Governor referred to payment systems as the lifeline of the economy, aiding in the achievement of financial inclusion. Further, he lauded India’s state-of-the-art payment infrastructure and innovative products which are driving higher adoption, in the backdrop of the pandemic and a greater digitalisation push by the Government. The need to ensure adequate cybersecurity and data privacy was emphasised.
Digital payments would continue to be a key driver of growth within the fintech cohort, with promising future prospects, given the jump in online transactions and enhanced internet penetration. Here’s a glimpse into the recent digital payment India.
4 Digital Payment Trends Observed in India
Digital Payments Trend #1: Boost in Transactions and Market Share
The digital payment ecosystem in India is growing at a very rapid pace. In June 2021 alone, the nation’s digital payments system processed over 15 crore transactions and was valued at INR 4.5 lakh crore each day. This represents an increase of 480% in daily transaction volumes between January 2018 and March 2020.
Digital Payments Trend #2: Reaches India’s rural areas
The Indian government has taken significant steps to ensure the use of digital payments in the country. The Union Govt has also invested in promoting digital payments in rural areas and encouraging banks to open more PoS machines across the country.
Digital Payments Trend #3: Prioritising data security
During the recent month, the Indian Government took several emergency measures to deal with the current pandemic crisis. Indian citizens were advised to stay indoors and mingle only with known people. While the intent of these measures was to prevent the spread of infection, it also led to disruption in everyday life. This was due to the severe restrictions imposed on movement and travel during the time period.
In the digital world, privacy and data protection are more crucial than ever. Everyone has a right to access and control their personal data. We believe that privacy is fundamental for securing digital trust, which is the foundation of today’s digital society.
Digital Payments Trend #4: Innovative payment options
Buy Now Pay Later also known as BNPL is a unique payment option that enables the buyers to split their payments in convenient installments with a zero-interest credit period. This makes it very easy for the buyer to purchase products online without having to pay through full amount upfront.
With BNPL, you get the convenience of cash with credit. Your payments are split across convenient installments with a zero-interest interest period. You don’t need to worry about paperwork or impact on your credit score and it’s instant, so there’s no waiting for long weeks for your debit card.
Future of Digital Payments in India
India has hit a record high of 383% in digital payments since 2019, as per the ACI report. With close to $12.4 Trillion worth of transactions by 2025, India is expected to make up 2.2% of the global digital payments market. By 2025, digital payment platforms are expected to touch 71.7% by volume with cash and cheques comprising 28.3% in India.
Also, Read More About: What You Need To Know About Wholesale Clothing Platforms