India’s Digital Payment Boom: Projected to Double by 2030

In recent years, the digital payment ecosystem in India has grown exponentially thanks to rapid technological advancements, changing consumer behaviour, and strong government support. India’s digital payment industry has surged from a valuation of $300 billion in 2018 to $3.6 trillion in 2024. According to a new survey, this positive trend will continue, with the digital payments market expected to double by 2030.

Read on to learn more about the factors fueling the rise of digital payments and what can be done to make it safer.

About the Report

The report ‘How Urban India Pays’, released by Kearney and Amazon Pay, states that the value of digital payment transactions will double to $7 trillion by 2030 compared to 2024 levels.

The study was conducted through an online survey involving over 6,000 consumers and more than 1,000 merchants. The research utilised both online and offline methods, covering 120 cities and representing diverse regions, income groups, city categories, age brackets, and genders.

What’s Happening?

According to the survey, 90 percent of participants favour digital payments for online purchases, with affluent consumers demonstrating the highest Degree of Digital Payment Usage (DDPU), utilising various digital payment methods for 80 percent of their transactions.

Millennials and Gen X are at the forefront of adopting various digital payment methods. Additionally, both men and women utilise digital payments for approximately 72 percent of their transactions, highlighting gender equality in this regard.

Digital payments have made significant inroads into small towns, with respondents from these areas reporting that 65 percent of their transactions are digital. In comparison, respondents from larger cities indicated that 75 percent of their transactions are conducted digitally.

Challenges and Scope of Reform

Although digital payments are destined for more success, some concerns need to be addressed to make the experience hassle-free:

• KYC Simplification: The report mentions the cumbersome nature of KYC verification and suggests using biometrics and AI as alternative approaches for identity verification.
• Government Support: The report highlights the importance of robust government support in creating a strong digital infrastructure.
• Security: With the rise in digital payments, instances of cybercrime, fraud, and identity theft have also increased. All stakeholders must jointly combat these issues to make the digital world more secure.

What’s Next?

Despite the challenges, the future outlook for online payments looks bright. A collaborative effort between the government, merchants, developers, and consumers can lead to a secure and thriving digital payment system, promoting financial inclusion and rapid economic growth.

That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!

This article is for informational purposes only. This is not investment advice. Disclaimer: Teji Mandi Disclaimer