UPI transactions: PwC India report on Sunday recommended that UPI transactions are doubtless to attain 1 billion per day by 2026-27, accounting for 90 per cent of the retail digital payments in India. The Indian digital payments market noticed regular progress at a CAGR of 50 per cent (volume-wise) and is predicted to attain 411 billion transactions in FY 2026-27 from 103 billion in FY 2022-23, the report additional stated.
UPI is projected to account for 90 per cent of the entire transaction quantity
Unified Payments Interface (UPI), which is driving the digital payments revolution, accounted for about 75 per cent of the entire transaction quantity within the retail phase throughout 2022-23, stated the PwC report titled “The Indian Payments Handbook – 2022-27”.
UPI is projected to account for 90 per cent of the entire transaction quantity in retail digital payments over the subsequent 5 years, the report stated.
“It is estimated that UPI will record 1 billion transactions per day by FY2026–2027, going from 83.71 billion transactions in 2022-23 to 379 billion transactions by 2026-27,” it added.
Credit card phase continues to develop
It additional stated the bank card phase continues to develop at a wholesome fee, as card (each debit and credit score) fee is one of probably the most used devices for retail digital payments after UPI. The quantity of transactions in bank cards is predicted to surpass debit playing cards by FY 2024–2025.
While bank card issuance is predicted to develop at a wholesome CAGR of 21 per cent within the subsequent 5 years, debit card issuance is predicted to have a stagnant progress with a CAGR of 3 per cent in the identical interval, the report stated. “The decline in debit card usage is because the major use case of debit card transactions is cash withdrawal, which can now be replaced by an easier way of withdrawing cash using UPI,” it added.
The payments business is predicted to concentrate on ecosystem growth
Mihir Gandhi, Partner and Payments Transformation Leader, PwC India, stated that within the subsequent 5 years, the payments business is predicted to concentrate on ecosystem growth and new use instances for current fee platforms. “Areas like embedded and ecosystem finance, digital lending based on payment transactions and offline payments will drive the next phase of growth for the payments industry. In the ever-evolving Indian payments landscape, innovation and inclusion are paving the way for a seamless digital economy,” Gandhi stated.
The PwC report additional stated income via the bank card enterprise accounts for almost 76 per cent of the general playing cards’ income in 2022–2023, making it a profitable enterprise phase for banks, NBFCs and FinTech. The income for bank card issuance elevated by 42 per cent in 2022–2023 in contrast to 2021–2022 and is probably going to develop by a CAGR of 33 per cent for the subsequent 5 years, it added.
(with inputs from PTI)
