Digital Transactions: Digital payments will only move upwards from this point onwards. According to a survey, In the next few years, they will account for more than 70% of the total number of payments made in India.
This increased number of digital payments will diminish the percent share of other modes of payments. Therefore, cash and cheques, the payment alternatives will only account for a 28.3% share by 2025.
Based on the report presented by ACI, a payment solution provider to corporations, India was ahead of China in the number of Digital transactions in 2020.
A total of 25.5 billion real-time payments were made in FY 2020 whereas only 15.6 billion transactions were done in China. Here are the demographics of how the payment was divided amongst various payment methods.
- Instant payment accounted for 15.6% share
- Other electronic payment methods held 22.9% share
- The rest of the 61.4% was a paper-based transaction
Now the report suggests that by 2025, the percent share will be drastically changed where
- 37.1% would be instant payments
- other electronic payment methods would account for 34.6%
- Cash and other paper-based payments would reduce to 28.3%
There is a cooperation between the public authority, regulators, banks, and fintech in India, which has assisted with propelling the objective of empowering financial inclusion and furthermore helped in quickening the process of payments digitization to residents, its Vice-President Kaushik Roy said.
Paytm collaborates with Ola, others, to apply for RBI’s digital payments umbrella entity
The report said India, China, South Korea, Thailand, and the UK rank all together as the top five nations producing the maximum number of Digital Transactions in 2020.
The use of Mobile wallets rose to an astonishing number of 46% in 2020, up from 40.6 percent in 2019 and 18.9 percent in 2018.
Nations like Brazil, Mexico, and Malaysia where numerous individuals verifiably depended on money are currently the absolute quickest adopters of mobile wallets.