Digital Payments Set to Become a Trillion-Dollar Market in Next Five Years: NITI Aayog (Download PDF)

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Digital payments market in India is expected to grow to US $1 trillion by 2023 led by growth in mobile payments, presenting huge business opportunities for players in digital space.

Image of Digital Payments Set

Image of Digital Payments Set

Image of Digital Payments Set

  • Mobile payments are slated to rise from $10 billion in 2017 - 18 to $190 billion by 2023.
Image of Digital Payments

Image of Digital Payments

Image of Digital Payments

  • Estimates are based on study of Credit Suisse. They are mentioned in booklet titled ‘Digital Payment: Trends, Issues and Opportunities’, launched by NITI Aayog and EACPM, at conference organized by FICCI & NITI Aayog.
  • This is 2nd annual edition of booklet on Digital Payments which was published in July 2017.

Key Messages of Booklet on Digital Payments Are:

  • Growth momentum of Digital Payments in Volume & Value sustained post Demonetization

  • Spectacular Growth in New Products like UPI

  • Steps taken to bring in New Regulatory Regime as per Watal Committee Report

  • RBI has taken 4 key initiatives to usher in new era of Digital Payments

  • World of Opportunities ahead for Fintech Players

Growth Trends in Digital Payments as Mentioned in Booklet as Follows:

  • Digital payments clocked robust growth in 2017 - 18 both in volume & value terms

  • In volume terms, growth during year was much higher than trend growth rate during 2011 - 16

  • Growth in total retail payments in value terms has seen 3-fold increase than trend rate of last 5 years

  • Unified Payments Service (UPI) & Immediate Payment Service (IMPS) segments in terms of volume registered spectacular growth during 2017 - 18. UPI, despite being new product in payment segment, has shown great adoption rate among consumers & merchants.

  • Total card payments continued its growth momentum & exceeded trend growth rate of last 5 years both in volume & value terms.

Background on Digital Payment: Trends, Issues and Opportunities

  • Analysis of growth trends is based on both MeitY & RBI data. While MeitY data provides volume data in public domain, RBI provides both volume & value data in public domain. Note on Data Sources is covered in booklet which gives comparative picture of data sets captured by MeitY & RBI.

  • New features of this booklet cover areas of Policy Developments, Global Trends & Opportunities.

  • Principal Advisor of NITI Aayog shared initiative taken by NITI Aayog in collaboration w/Ministry of Human Resource Development under Global Initiative of Academic Networks (GIAN) Scheme.

  • NITI Aayog has initiated short-term course on Digital Payments. This course was held at Mangalore University from 23rd to 27th July 2018.

  • Proposed changes in regulatory framework, entry of global giants & advancement of technology will drive future growth of Digital Payments in Country.

Global Initiative of Academic Networks

  • Global Initiative of Academic Networks (GIAN) in Higher Education is new Govt. scheme that aims to increase footfalls of reputed international faculty to Indian academic institutes; & thereby bring in international academic excellence in India’s higher education institutions.

  • This programme was initially conceptualized as Indo-US collaboration but was later its scope was extended.

  • Programme is initially to be confined to IITs, IIMs, NITs & some central universities with ‘A’ Grade.

- Published/Last Modified on: October 22, 2018

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