Team News Riveting
Digital payment service providers have reason to smile; reports suggest the business is likely to see a three folds increase by 2025.
In India, digital payments are expected to grow over three-folds to Rs 7,092 lakh crore by 2025 on account of government policies around financial inclusion and growing digitisation of merchants, according to a research report of RedSeer, which serves various e-commerce companies and venture capitalists including Tiger Global.
The country’s digital payment market was worth around Rs 2,162 lakh crore in 2019-20, the report said. It calculated that the current 160 million unique mobile payment users would multiply by 5 times to reach nearly 800 million by 2025.
“Mobile payments will drive around 3.5 per cent of total digital payments of Rs 7,092 trillion by financial year 2025, up from the current 1 per cent. The total mobile payment users who currently stand at about 162 million would reach around 800 million during this period,” the report said.
COVID-19 would act as a catalyst to encourage the digital payments across India.
Rising government initiatives that promote digitalization and usage of digital payment platforms are anticipated to contribute to the market growth. The government of India introduced its Digital India campaign that promotes cashless transactions and usage of various mobile wallets available.
Vendors are adopting emerging technologies such as artificial intelligence, machine learning, block chain technology, and IoT for improving the security aspects of the digital payment platforms and to enhance the user experience.
