The digital payments industry is projected to double to ₹593 lakh crore in next four fiscals, compared to ₹265 lakh crore logged last fiscal.
The transaction volumes were up more than three times, reaching 481 billion compared to 159 billion in the same period, according to the PwC report released at the Global Fintech Fest held in Mumbai on Wednesday.
UPI continues its remarkable growth trajectory with a y-o-y growth in transaction volume of 57 per cent. Last fiscal, the total transaction volume was slightly over 131 billion and is expected to grow to 439 billion by FY29, according to the report.
UPI now accounts for over 80 per cent of overall retail digital payments in India and is expected to contribute 91 per cent by 2028-29.
Credit cards have witnessed formidable growth in FY24, with the industry adding over 16 million cards and crossing the well-anticipated milestone of 100 million cards in force.
With the addition of new cards, the industry has also seen a 22 per cent and a 28 per cent surge in transactional volume and value, respectively.
Debit cards have seen a dip in both transaction volume and value due to a shift in cardholders’ preferences. Credit cards are expected to reach 200 million by FY29, it said.
The popularity of Indian payment products is increasing considerably, driven by new industry use cases, increased participation from banks, non-banking financial companies and fintech companies, seamless integration with digital ecosystems and marketplaces, and advanced security features.
Both consumers and businesses are increasingly preferring these products for their ease of use, reliability, efficiency, and cost-effectiveness. Additionally, regulatory initiatives to promote digital payments and financial inclusion have created a conducive environment for innovation, expansion, and adoption, said the report.
Cash is rapidly losing its share in global payments. This decline in cash usage in India over recent years is primarily due to the rapid adoption of digital payments.
The Indian government’s strong emphasis on financial inclusion has played a crucial role in this shift, making digital transactions more accessible and convenient for users across both urban and rural areas, said the report.