The growth of digital payments in India could mean that Unified Payments Interface-based transaction volume will reach nearly 59 billion by 2023, owing to its high peer-to-peer type of transaction penetration, according to a joint report by Payments Council of India (PCI) and PWC on Thursday.
Clocking over 1 billion transactions every month, the platform has witnessed a compound annual growth rate (CAGR) of approximately 785% in volume and nearly 570% in terms of value from FY 2017 to FY 2020, the report titled "Empowering payments: Digital India on the path of revolution" stated.
India is one of the fastest growing countries in the world showing rapid progression in transformation of digital payments, largely due to its large population and demographics, according to the findings presented at the virtual Global Fintech Fest (GFF) 2020.
With global transaction value for digital payments expected to reach $12.4 trillion by 2025, India is expected to contribute approximately 2.2% of the world's digital payment market by 2023 alone.
Among other top-rung digital products in the country, the research showed that Bharat QR and Bharat Interface for Money (BHIM) QR have also gained significant traction in the Indian market.
Bharat bill payment system (BBPS) has shown remarkable growth with a CAGR of nearly 1,590% in volume and nearly 1,650% in value from FY 2017 to FY 2020.
Aadhaar Enabled Payment System (AePS), on the other hand, has been a game-changer for the government in fulfilling its goal of financial inclusion, and its adoption will only continue to grow in the coming years, said the report.
The platform witnessed growth of nearly 253 per cent in volume and nearly 264 per cent in value and is expected to clock transactions worth 2,467 million and 7,289 million in volume and value, respectively, by FY23.