Unified Payments Interface (UPI), which is driving the digital funds revolution, accounted for about 75 per cent of the whole transaction quantity within the retail section 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 whole transaction quantity in retail digital funds over the following 5 years, the report stated.
The Indian digital payments market noticed regular development at a CAGR of fifty per cent (volume-wise) and is predicted to succeed in 411 billion transactions in FY 2026-27 from 103 billion in FY 2022-23, the report stated.
“It is estimated that UPI will file 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.
It additional stated the bank card section continues to develop at a wholesome fee, as card (each debit and credit score) cost is likely one of the most used devices for retail digital funds 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 development with a CAGR of three per cent in the identical interval, the report stated.
“The decline in debit card utilization is as a result of the foremost use case of debit card transactions is money withdrawal, which might now get replaced by a better manner of withdrawing money utilizing UPI,” it added.
Mihir Gandhi, Partner and Payments Transformation Leader, PwC India, stated that within the subsequent 5 years, the funds trade is predicted to deal with ecosystem growth and new use instances for current cost platforms.
“Areas like embedded and ecosystem finance, digital lending primarily based on cost transactions and offline funds will drive the following section of development for the funds trade. In the ever-evolving Indian funds panorama, innovation and inclusion are paving the best way for a seamless digital economic system,” 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 section for banks, NBFCs and FinTech.
The income for bank card issuance elevated by 42 per cent in 2022–2023 in comparison with 2021–2022 and is prone to develop by a CAGR of 33 per cent for the following 5 years, it added.