India’s digital payments have experienced rapid growth in recent years.
Experts say some of the factors driving the growth of digital payments in India are easy-to-use payment solutions, digital awareness programs, supportive government policies.
India’s digital payments market is expected to more than triple from $3 trillion to $10 trillion by 2026 amid rising digitization, according to a report by PhonePe and Boston Consulting Group. This indicates that India has one of the fastest-growing fintech landscapes in the world, primarily driven by advancements in the digital payments segment.
Reasons for the rapid growth of digital payments
Subhrangshu Kumar Neogi, Founder and CEO, Escrowpay said, “India’s digital payments landscape has been driven by a rapidly growing middle class, government initiatives to encourage digital payments and a convergence of pervasive factors in recent years. using smartphones. The market will continue to grow and is expected to triple to $10 trillion by 2026.
Increasing availability and accessibility of digital payment methods: He added that the increasing availability and accessibility of digital payment methods in India is one of the key factors behind this expansion. Consumers have a wide choice of alternatives when making digital transactions, from mobile wallets to UPI-based payment systems. This is further aided by the government’s efforts to promote a cashless society through programs such as demonetisation and the introduction of GST, which encourages online transactions.
E-Commerce Expansion: The expansion of e-commerce in India is another factor boosting the digital payments market. The demand for secure and practical payment methods has increased as more and more consumers shop online.
“Digital payment platforms like Escrow are becoming increasingly popular in the Indian market as they provide buyers and sellers with a secure and reliable means of online interaction. Overall, a rapidly growing customer base, government assistance and a thriving e-commerce industry make India a top digital payments market with huge growth potential in the future,” Neogi said.
Widely available payment methods and platforms: India’s digital payments landscape has witnessed phenomenal growth and the adoption of digital payments by Tier 2 and Tier 3 cities has been a game-changer, says Amit Kumar, Chief Technology Officer, Easebuzz.
“One of the main reasons behind the sharp increase in online customers is mainly UPI, credit cards, debit cards, netbanking, wallets, buy now, pay later, EMIs, etc. due to widely available payment methods and platforms such as Similarly, availability of cheaper data and affordable smartphones has also led to a rise in digital payments,” added Kumar.
“Some of the other factors driving the growth of the digital payments market in India are easy-to-use payment solutions, digital awareness programs and supportive government policies. OTP based authentication, card tokenization etc. Measures like this have helped to increase consumer confidence in digital payments,” said Kumar.
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