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India's digital payments ecosystem is entering a pivotal phase of transformation, marked by exponential growth, strategic innovation, and deepening financial inclusion, according to a report by PwC.
The report highlighted that digital payments in India are projected to grow from 206 billion transactions in FY25 to 617 billion in FY30, with the total transaction value expected to rise from Rs 299 trillion to Rs 907 trillion, almost three times in five years. This sharp growth underscores the country's rapid shift towards a more digital and cashless economy. It stated "Credit cards are witnessing robust growth, with volumes and values projected to grow at 21.7 per cent and 20.8 per cent compound annual growth rate (CAGR)". At the centre of this evolution is the Unified Payments Interface (UPI), which continues to dominate the retail payments landscape, accounting for nearly 90 per cent of total transaction volumes. With continuous innovations such as biometric authentication, IoT-enabled payments, and cross-border remittances, UPI is expected to reach 1 billion transactions per day by FY28. However, the report also noted that signs of saturation are beginning to appear in UPI's growth trajectory, making it crucial to develop new use cases and upgrade payment infrastructure to sustain momentum. Initiatives such as enabling credit lines through UPI and allowing customers to link RuPay credit cards on the platform are expected to further boost transaction volumes. The integration of RuPay credit cards with UPI, the potential expansion of credit card offerings by non-banking financial companies (NBFCs), and the increasing adoption of co-branded and virtual cards are reshaping consumer credit behaviour in India. Meanwhile, the report pointed out that debit card usage continues to decline, largely due to the convenience of UPI and the absence of significant incentives for debit card transactions. The report also outlined that the next phase of India's digital payment growth, the report added, will focus on building a secure, inclusive, and future-ready ecosystem that benefits consumers, merchants, and businesses alike. (ANI)
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