Digital Payments In India To Supersede Cash By 2022: IDC
India has predominantly been a cash-obsessed nation. However the scenario has been rapidly changing in the last one year, with demonetization, rise of digital currencies and increased use of mobile internet. The countery now has the third-largest internet user base in the world with 300 million users. Out of which, nearly 50 percent of them are mobile-only internet users. Moreover, with next-generation payment structures, such as mobile wallets, payments banks, BharatQR, and electronic authentication, creating new forms of digital payment channels and servicing capabilities, digital payments in India is likely to supersede cash by 2022.
IDC Financial Insights report: The Future of Payments in India: More Spectacular Growth Ahead, that highlights the key trends in the digital payment space and their impact on the payment industry, shows the spectacular growth of noncash, digital payments in the once hard-to-crack market.
“The payment industry in India is clearly going through gigantic changes. Over the last few years, the tremendous growth in the digital payment space has elicited a passionate debate across the industry, but one thing is certain, the next several years will see a transformation of how consumers, businesses, and the government move money,” says Anuj Agrawal, Senior Research Manager, IDC Financial Insights.
As was highlighted by an earlier IDC FutureScape report, by 2018, several markets worldwide will launch a nationwide mobile payment scheme for POS, ecommerce, and ATM transactions, the report discusses how India appears to be steadfast in this goal, taking major steps to be among the first few countries to launch a nationwide mobile payment scheme.
Usage (number of transactions) of digital payment instruments has seen a tremendous improvement year over year versus traditional nondigital channels (excluding cash). The contribution of digital payment instruments (such as retail electronic clearing, mWallet, and mobile banking) means the volume of transactions has already doubled in 2016-17 and is expected to grow further by the end of FY17-18, from 32 percent in 2013-14 to 62 percent in 2017-18 (estimate) (see Figure below).
Source: Reserve Bank of India(RBI) Payment Indicators, IDC Analysis
Further, according to the IDC Financial Insights estimates, the percentage of transactions at POS will supersede the transaction at ATM by 2022, both in terms of volume and value. (See figure below)
Source: Reserve Bank of India(RBI) payment indicators (2016-17); IDC analysis (2017-18E to 2021-22E)
- Is It Time To Say 'Goodbye' To Passwords?
- The Promise Of Cognitive Computing In India
- Top 10 Customer Experience Trends in 2018
- 7 Trends Driving IT Transformation In India
- Suspicious Transactions Up Due To Surge In Digital Payments
- Weekly Rewind: Top 10 Stories On CXOToday (Jan 8-13)
- Hyderabad To Host 'Olympics Of IT Industry'
- What Aadhar Data Breach Means To Digital India And Its Citizens
- FinTech Trends To Watch Out For In 2018
- How 2018 Can Shape The Digital Transformation Story