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Indian digital payments market expected to reach $10 trillion by 2026: Report

Released by PhonePe in collaboration with Boston Consulting Group, the report shows how India’s digital payments landscape has witnessed a growth over the past five years


India’s digital payments market is expected to rise more than threefold from the current three trillion dollars to $10 trillion by 2026, according to the latest report by PhonePe in collaboration with Boston Consulting Group (BCG). Titled as, ‘Digital payments in India: A $10 trillion opportunity’, the report highlights that India’s digital payments landscape has witnessed growth over the past five years. As a consequence of this growth, digital payments will aim to constitute two out of three payment transactions by 2026.

Karthik Raghupathy, head, strategy and investor relations, PhonePe, said. “This report is part of the PhonePe Pulse initiative, which was launched last year, in our effort to give back to the fintech ecosystem. PhonePe Pulse has been received by all the key stakeholders in the ecosystem. As India’s fintech platform we have seen the growth of unified payments interface (UPI) over the last few years. UPI has helped with India’s transition to non-cash payments when it comes to both person-to-person (P2P) and person-to-merchant (P2M) transactions. UPI saw about a nine times transaction volume increase in the past three years, increasing from five billion transactions in FY19 to about 46 billion transactions in FY22: accounting for more than 60% non-cash transaction volumes in FY22. This indicates that digital payment has gained acceptance across the country. While tier 1 and tier 2 cities have witnessed acceptance of digital payments, penetration in tier 3 – 6 cities shows headroom for growth. The next wave of growth is expected to come from tier 3-6 locations, as evidenced in the past two years wherein tier 3-6 cities have contributed to nearly 60-70% of new customers for PhonePe,” he added.



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