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India Digital Payment Market Research Report, 2029

India Digital Payment Market Research Report, 2029

Actual Market Research 31-03-2024 66 Pages Figures : 6 Tables : 20 Region : Asia-Pacific Country : India

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India's digital payment market boasts a fascinating history. Cash has traditionally dominated transactions, but a significant shift began around 2016. The launch of the Unified Payments Interface (UPI) by the National Payments Corporation of India (NPCI) proved to be a game-changer. This real-time interbank system, accessible through smartphones, enabled instant and secure peer-to-peer (P2P) and merchant payments. UPI's rapid adoption, coupled with government initiatives like Digital India, has propelled the digital payments market forward. Culturally, there's a growing acceptance and preference for cashless transactions, particularly among the young and tech-savvy population. E-commerce flourishment has further fueled this trend, as online purchases necessitate digital payments. Mobile phone penetration across the country has also been instrumental. People are increasingly comfortable using their phones for banking and financial activities, making digital payments a natural extension. According to the research report "India Digital payment Market Research Report, 2029," published by Actual Market Research, the India Digital payment market is projected to with more than 24% CAGR from 2024 to 2029. Several key drivers are propelling this market. Financial inclusion is a major factor. Digital wallets and UPI accounts have brought millions of unbanked and underbanked individuals into the formal financial system. This not only empowers them financially but also fosters transparency and traceability in transactions. Additionally, the government's push for digitalization, with incentives for cashless transactions, has significantly boosted adoption. The convenience, security, and speed offered by digital payments compared to cash are undeniable advantages. However, challenges remain. There's a digital divide, with limited internet access and smartphone ownership hindering wider adoption in rural areas. Cybersecurity concerns and issues with fraudulent transactions require constant vigilance and security improvements. Educating the population about the benefits and safety measures associated with digital payments is crucial for sustained growth. In the Indian digital payment market, offerings are diversified into solutions and services, with solutions encompassing a range of digital payment platforms such as mobile wallets, Unified Payments Interface (UPI) platforms, e-commerce payment gateways, and Point-of-Sale (PoS) solutions for offline transactions. Services provided alongside core payment processing include transaction analytics, fraud detection and prevention tools, loyalty program integration, and digital lending services. Transaction types are categorized into domestic and cross-border, with domestic transactions covering all digital payments within India including peer-to-peer transfers, bill payments, online shopping, and in-store digital payments, while cross-border transactions cater to international payments, experiencing growth driven by globalization and e-commerce despite challenges like currency conversion fees and regulations. Payment modes include traditional cards, ACH transfers, digital wallets like Paytm, PhonePe, and Google Pay which have gained popularity due to convenience and versatility, and emerging technologies such as contactless payments, biometric authentication, and UPI-based bank transfers. Verticals/end user industries utilizing digital payments vary, with BFSI heavily involved in both developing and utilizing digital payment solutions, healthcare streamlining bill payments and insurance claims, IT & Telecom adopting digital payments for online purchases and bill settlements, Media & Entertainment relying on digital payment solutions for online content consumption, Retail & E-commerce driving digital payment adoption with convenient online shopping experiences, Transportation transitioning towards digital payments for ticketing and ride-hailing services, and various other sectors including education, hospitality, and government services gradually integrating digital payment options for enhanced user experiences. In the Indian digital payments industry, policy and regulations are a critical area to consider. Firstly, the Reserve Bank of India (RBI) plays a central role. They've issued guidelines and licenses for various digital payment players, ensuring financial institutions comply with Know Your Customer (KYC) norms and Anti-Money Laundering (AML) regulations. This helps build trust and transparency within the system. Secondly, data security is a major focus. The RBI mandates data localization, requiring payment companies to store sensitive financial information within India's borders. This protects user data and fosters consumer confidence. Additionally, the Payment Card Industry Data Security Standard (PCI DSS) is a mandatory compliance requirement for all entities that store, process, or transmit cardholder data. The government has also played a proactive role. Initiatives like Aadhaar, a unique digital identity program, have streamlined user verification and onboarding for digital wallets. Open APIs, mandated by the RBI, promote healthy competition and innovation within the payments space. This allows new players to enter the market and offer competitive services. However, regulations can also create hurdles. The evolving nature of the digital payments landscape can sometimes lead to policy ambiguity. Additionally, stringent KYC norms might deter some users, particularly those in underbanked regions, from entering the formal financial system. Overall, the Indian digital payments market presents a dynamic and exciting landscape. With its strong historical foundation, evolving cultural acceptance, and powerful drivers, it's poised for continued exponential growth. Addressing the challenges will be key to ensuring an inclusive and robust digital payments ecosystem for all of India. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Digital Payment market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Offering • Solutions • Services By Transaction type • Domestic • Cross Border By Payment Type • Cards • ACH Transfer • Digital Wallet • Other Payment Modes By Vertical • BFSI • Healthcare • IT & Telecom • Media & Entertainment • Retail & E-commerce • Transportation • Others The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Digital Payment industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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