By 2025, Digital Transactions To Reach $1-Tn Annually: Report
By 2025, digital transactions in India could be worth $1 trillion annually with cash to non-cash ration reversing (4 out of 5 payments made digitally), according to a new report. The report titled: ‘Transactions 2025,’unveiled jointly by ACI Worldwide, a global provider of real-time electronic payment and banking solutions, and India-based AGS Transact Technologies (AGSTTL), offers an in-depth insight into India’s digital payments revolution.
The banking and fintech industry in India growing in the digital payments area was also drafted. It also offers a gist on how the financial institutions, retailers and billing organizations can take a few steps that will help them better prepare for – and respond to – shifts in the payments space.
According to the report, 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 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.
According to the report, connected devices (Internet of Things) will further drive payments digitization – in India and globally – with around 30 billion connected devices anticipated globally by 2025. At the same time, 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, the report mentioned. “India is undergoing an incredible transformation driven by the rapid digitalization of payments,” said Manish Patel, Vice President, ACI Worldwide.
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.”
To growth of UPI payments across India, we have implemented a customized, UPI-enabled version of its UP Retail Payments solution, ACI announced last week. AGSTLL, a long-standing strategic partner of ACI, is the first to bring the suite of hosted processing solutions and fraud monitoring to market, he said.
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