IBEF: August 30, 2019
Digital payments in India are witnessing significant growth of 12.7 per cent, as per KPMG, a global advisory company.
According to a KPMG report, the mobile payment revolution in India has resulted in increase in the number of vendors receiving digital payments with around 1.5 million digital payment acceptance locations in 2016-17.
Moreover, the number of vendors accepting digital payments modes has grown to more than 10 million in a short span of two-three years.
"The mobile payment revolution with its evolving form factors has led to a boom in the number of merchants adopting digital payments. From close to 1.5 million digital payment acceptance locations in 2016-17, the number of merchants accepting digital payments modes has increased to over 10 million, in a short span of two to three years," the report "Fintech in India - Powering mobile payments" said.
As per KPMG, In India, one of the key factors which assumed a transformational role and democratised versatile instalments was the role played by wallet players. The ease of payments and convenience were the components which has led to increase in adoption of wallets.
During the period of 2019-23, the mobile wallet market is anticipated to expand at a CAGR of around 52.2 per cent in terms of number of transactions.
Another factor that has led to the next wave in mobile payments is the Unified Payments Interface (UPI)-based real time payments. The volume of UPI transactions has increased at a CAGR of 246 per cent during the period from 2016-17 to 2018-19.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.