Wondering how the digital payments scenario is panning out in India? According to some latest reports, the Indian Government has set a target of 30 billion digital payments in 2019. All mobile wallet companies received a target of 6.3 billion transactions, while banks see a slight pressure to meet the 23.7 billion mark.
Does this look like an ambitious target? Let’s take a look at some numbers to see how we’ve been trending in the digital payments space so far.
The Numbers Game
The first 6 months of 2018 saw digital transactions crossing 11 billion based on calculations made by the NPCI and RBI. The calculations involved several payment modes ranging from cards, prepaid wallets, IMPS, and UPI transactions and even Aadhar Enabled Payment Systems (AePS).
As far as emerging online payments go, UPI has surpassed expectations with rapid growth in the Indian e-commerce industry. December saw the value of UPI transactions cross Rs 1.02 trillion, a soaring 25% increase as compared to the previous year.
UPI transactions crossed 620 million in 2018. With big guns like Whatsapp and Google entering the UPI sector, it has become a preferred mode of online payment for many Indians.
Image Source: entrackr
Why is India emphasizing on digital payments in 2019?
Since demonetization, there have been big shifts in the digital payments sector of India. Demonetization gave customers a strong motive to move to non-cash payment methods and even though a large margin of the population still stick to traditional modes of payment, a new normal has been found with the gradual growth of online and secure gateways.
It’s simple: people want receipts. Digital payments are safer and simpler, and more transparent.
We’re not saying it. The numbers are; the number of merchants accepting card payments doubled in the last two years to cross 3 million, and the number of UPI transactions almost touched 250 million in June 2018. Cash transactions by consumers in the country dropped from 78% in 2015 to 68% in 2017.
With the new target in place, India hopes to move a larger chunk of the Indian population into the digital sector. The government has been taking steps to promote this change. Last year, the Ministry of Finance launched the India Post Payments Bank to enable bank accounts for remote areas.
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