India Beats China, US To Become World’s #1 In Digital Payments; 71% Of All Payments Will Be Digital!
According to a report, next few years are going to see rapid increase in digital payments. Also it is going to account for a 71.7 percent share of all the payments in India by 2025.
According to the report by ACI Worldwide, only 28.3 percent share will be occupied by cash and cheques, the other payment alternatives.
India Beats China In Digital payments
According to the report, in the year 2020 India with 25.5 billion real-time payments transactions was ahead of China 15.7 billion real-time payments transactions
Overall breakup in payments as of 2020:
- Paper based Payments System – 61.4 percent
- Instant Payments – 15.6 percent
- Other Electronic Payments – 22.9 percent
Projected share by 2025 :
- Paper based Payments System – 28.3 percent
- Instant Payments – 37.1 percent
- Other Electronic Payments – 34.6 percent
The report said that by 2024, in the overall electronic transactions space, the share of real time payments will exceed 50 percent.
Kaushik Roy, Vice-President said that the proliferation of rapid payments and digitisation as well as the goal of financial inclusion is realized due to the synergy between the government, the regulator, banks, and fintechs in India.
The New ‘Digital’ Payment Ecosystem
There are many consumer and business behaviour changes due to the pandemic and all the entities of the payment ecosystem such as banks merchants and intermediaries are adapting quickly and prioritising the shift to digital amongst all other priorities.
Top five countries generating real-time transactions according to the report:-
- South Korea
Mobile wallet which was 18.9 percent in 2018, 40.6 percent in 2019, is at its historic high of 46 percent and we gauge that this is nowhere the apotheosis.
Also the likes of Brazil, Mexico and Malaysia where people are traditionally inclined to make payments by cash are also in the list of the fastest adopters of mobile wallets.