Digital Payments in India: A US$10 Trillion Opportunity

India’s digital payments landscape has transformed dramatically over the past five years and is set to become a digital payment economy. This report, published in collaboration with PhonePe, provides a detailed outlook on the factors accelerating the growth of digital payments in India, shifting consumer behavior towards contactless payments, perspective on game-changing initiatives, and the progression from embedded payments to embedded finance, thus unlocking a significant change in access to credit for small merchants due to the creation of a digital transaction trail.

The report forecasts the digital payment market to more than triple to $10 trillion in the next five years, with non-cash contributions constituting nearly 65% of all payments, wherein 2 out of 3 transactions will be digital in the next five years as opposed to 2 out of 5 transactions today. Merchant payments will emerge as the most powerful driver of this growth, outpacing person-to-person fund transfers. The report provides a detailed outlook on the critical imperatives that stakeholders need to take to strengthen the country’s digital infrastructure in order to unlock the potential of digital payments in India.