Ahead of Money2020, one of the largest Fintech event all over the world, a very interesting report has been released, which predicts that India can experience annual digital transactions worth $1 trillion, in the next 7 years.
As per the findings of the report, as far as 80% of all transactions in India will become digital in 2025.
Is it really possible? Or it has already happened in India?
$1 Trillion/ Yr Digital Transactions in India?
ACI Worldwide has released a report titled “Transactions 2025: The Future of Payments in India”, which is pretty bullish on the future of Digital India.
The findings of the report predict that by 2025, four out of five transactions in India would be digital, and total consolidated digital transactions will cross the $1 trillion mark.
As per the report, there are around 90 million users of digital transactions in India, which will rise to staggering 300 million by 2025.
However, there seems a mismatch in the numbers presented by ACI, and the data shared by RBI last month.
As per RBI’s data, close to $2 trillion of digital transactions were conducted in India in January alone! In fact, if we dig deeper into RBI’s data, then the maximum digital transactions which happened in India was in March last year, when Rs 149 trillion worth of e-transactions were carried, which is around $2.4 trillion.
Hence, ACI report is predicting an annual worth of digital transactions in 2025, which is already happening every month in India, right now.
What Is Driving The Surge in Digital Transactions?
As per ACI report, the increase in mobile users across India, and the push for UPI by Govt. of India are two main reasons for the surge in digital transactions.
Manish Patel, vice president, ACI Worldwide said,
“India is undergoing an incredible transformation driven by the rapid digitalization of payments. The findings of our new research reinforce our view that flexible, scalable and reliable technology will be critical to the future of payments in India as the market continues to experience incredible growth.”
The report also warns about cyber threats, and attacks, which can stop the growth of digital transactions in India. As per the findings of the report, cyberattacks costs $4 billion worth of digital money, every year in India, which can rise to $20 billion by 2025.
No reference or evidence of this number was presented.
You can find the complete report here.