Agencies, New Delhi,
By 2025, digital transactions in India could be worth 1 trillion dollar annually, with four out of every five transactions being made digitally.
According to ACI Worldwide, a leading global provider of real-time electronic payment and banking solutions, together with AGS Transact Technologies (AGSTTL), India’s leading end-to-end payment solutions company survey ‘Transactions 2025’, UPI (Unified Payments Interface) transactions are a key driver of greater financial inclusion, as the Indian payments ecosystem undergoes rapid digital transformation.
The survey said that mass adoption of e-payments and a thriving fintech scene, combined with regulatory policy, are set to propel India into a leading position in the global payments landscape.
It said that India’s smartphone user base will likely double to 500 million by 2020; increasingly affordable devices and data will spur safe, fraud-resistant digital transactions based on biometrics and multi-factor authorization, as well as an explosion of consumer services via mobile internet.
The survey further said that based on India’s current growth trajectory, the country could boast a 1 trillion dollar market for digital transactions by 2025, with cash to non-cash ration reversing (4 out of 5 payments made digitally).
The user base for digital transactions in India is currently close to 90 million, but could triple to 300 million by 2020 as the use cases for digital transactions grow and new users from rural and semi-urban areas enter the market.
Initiatives such as UPI (Unified Payments Interface) payments are driving greater interoperability between banks, independent of acquirer, payment provider or mobile app, said the survey.
According to the findings, connected devices (Internet of Things) will further drive payments digitization – in India and globally – with around 30 billion connected devices anticipated globally by 2025. Cyberattacks cost India an estimated $4 billion annually, and could rise to $20 billion by 2025, with the digitization of payments presenting new challenges for cybersecurity.
“India is undergoing an incredible transformation driven by the rapid digitalization of payments,” said Manish Patel, Vice President, ACI Worldwide. “The findings of our new research reinforce our view that flexible, scalable and reliable technology will be critical to the future of payments in India as the market continues to experience incredible growth.”
Mahesh Patel, Group Chief Technology Officer, AGS Transact Technologies Limited, said “we understand that rapid rise in internet users nationwide is spurring an increase in digital transactions. However, the Indian market unlike many Western nations is still to mature and remains threatened due to lower awareness levels.”
“Hence, it is necessary that the rise in digital transactions remain holistic thereby supporting growth with scalable processing platform. Also, it should be accompanied by allied precautionary measures such as cyber security and fraud prevention,” he said.