Retail online transaction platform UPI is likely to continue to dominate the digital payments landscape in the country, despite new modes like BNPL and digital currency likely to define future payments. PwC India, in a study report, has said that Unified Payments Interface (UPI), ‘Buy Now Pay Later (BNPL), Central Bank Digital Currency (CBDC) and offline payments will accelerate the growth of digital payments in India over the next five years. Will stay
According to the report, UPI will continue to be a major contributor to the digital payments space, followed by BNPL. The report, titled ‘The Indian Payments Handbook 2021-26’ by PwC, states that the Indian digital payments market has witnessed a strong growth of 23 per cent in terms of numbers and is expected to reach 217 billion transactions by FY2025-26. likely to reach. In value terms, this figure is expected to reach Rs 5,900 crore in the next five years.
The report says that there were 22 billion digital transactions through UPI in the year 2020-21 and it is expected to reach 169 billion by the year 2025-26. In this way, a sharp growth of 122% can be registered on a yearly basis. According to the report, low-value transactions through UPI and partnerships with other countries in Asia for cross-border remittances are also fueling this growth.
Why do you like BNPL?
BNPL currently has about 363 billion transactions valued at Rs 36,300 crore, which is expected to cross 3,191 billion transactions valued at Rs 3,19,100 crore in the next five years. Experts say that the alternative to BNPL was started by e-commerce, which is now being adopted by other platforms offering the option of payment from the app. In this, instead of making the payment immediately on the purchase, a fixed time is given. This gives consumers some time to pay and they do not have to worry about making the purchase of their choice.
Mihir Gandhi, Partner and Head of Payments Transformation, PwC India says that the digital payments industry is poised for tremendous growth in the coming years with the combined efforts of regulators, banks, payment and fintech companies, as well as card networks and service providers. is.-