India's Digital Payments Skyrocket: UPI Leads the Charge

India's digital payments industry has surged, with transaction volumes growing 42% YoY in FY 2023-24, according to a PwC report. Unified Payments Interface (UPI) spearheads this growth, projected to handle 91% of retail digital payments by FY 2028-29. The shift to digital payments is also evident in smaller cities.

India's digital payments industry is experiencing unprecedented growth, with transaction volumes increasing by 42% year-on-year (YoY) in FY 2023-24, a new PwC report reveals. The report forecasts a threefold rise in transaction volumes, projecting an increase from 159 billion in FY 2023-24 to 481 billion by FY 2028-29.

The market value of these transactions is expected to almost double, expanding from INR 265 trillion to Rs 593 trillion within this period. Unified Payments Interface (UPI) remains at the forefront of India's digital payment surge, achieving a remarkable 57% YoY growth in transaction volume in FY 2023-24, exceeding 131 billion transactions.

By FY 2028-29, UPI transactions are anticipated to reach 439 billion, constituting an astounding 91% of India's retail digital payment transactions. In FY23 alone, UPI dominated with over 75% of the total transaction volume, underscoring its pivotal role. This trend has persisted into FY24, with UPI transactions reaching Rs 199.9 trillion in value.

The PwC report suggests that, considering current growth trends, technological advancements, and UPI's market penetration, daily UPI transactions could hit 1 billion during FY 2027-28 and may soar to 1.4 billion by the end of FY 2028-29. As UPI gains popularity, debit card transactions have declined in both volume and value, as consumers opt for the convenience of UPI.

India's digital payment infrastructure is rapidly expanding, particularly in Tier 2, 3, and 4 cities. QR code usage surged by over 30% YoY in FY 2023-24. Innovations like soundboxes, merchant cross-selling, and new activation strategies are driving digital payment adoption among merchants, especially in smaller cities. (ANI)

(With inputs from agencies.)