Digital payments will grow to 71.7 pc of all transactions by 2025: Report

According to a study released on Wednesday, digital payments will rise significantly over the next few years, accounting for 71.7% of all payments in India by 2025.

Other payment options such as Cash and cheques, will account for 28.3% of the market, according to a study by ACI Worldwide, an organization that offers payment solutions to companies.

According to the survey, According to the survey, India was ahead of China with 25.5 billion real-time payments transactions in 2020, compared to 15.7 billion for the northern neighbour.

Instant payments accounted for 15.6% of total payments in 2020, while other electronic payments accounted for 22.9% and paper-based payments accounted for 61.4%, according to the study.

According to the study, by 2025, instant payments will account for 37.1%, electronic payments for 34.6%, and cash and other paper-based payments will account for 28.3%.

In 2024, the number of real-time payments will account for more than half of all electronic transactions.

Its Vice-President, Mr. Kaushik Roy stated that in India, there is a partnership between the government, the regulator, banks, and fintech that has benefited in the advancement of the aim of facilitating financial inclusion and providing people with rapid payment digitization.

Banks, retailers, and intermediaries around the payment ecosystem are reacting quickly and prioritizing security as the pandemic continues to drive changes in customer and business activity.

According to the global survey, India, China, South Korea, Thailand, and the United Kingdom are the top five countries that will generate real-time transactions in 2020.

In 2020, mobile wallet adoption reached a new high of 46%, up from 40.6% in 2019 and 18.9% in 2018. Mobile wallet adoption is accelerating in countries like Brazil, Mexico, and Malaysia, where several people previously relied on cash.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.