As all the statistics indicate, Covid has served as one of the catalysts for the growth of ‘Digital Payment Industry’. More people have shifted to digital payment methods than ever before.
UPI accounts for approximately half of the digital payments. The number of Unified Payment Interface (UPI) transactions has almost doubled from 2326.02 crores in FY2019 to 4374.45 crores in FY2021. This growth has been driven largely by sectors such as telecom, healthcare, IT, retail, automobiles, and agriculture. There are 116 crore wireless telephone connections in India.
The last two years have been the major contributors to the growth in the digital payment market, despite a drop of 4 per cent in the number of UPI transactions in November last year. Reports state that PhonePe and GooglePay hold the largest share of the UPI market. PhonePe was responsible for 46.3 per cent of the transactions, making it the largest player in the market, followed by GooglePay which accounted for 36.4 per cent of the transactions.
In the last two years, India has broken many records. In 2020, the country had highest number of real-time online transactions, leaving behind China and the US. It also became the second-largest internet consumer market with 750 million subscribers. The number is expected to be 900 million by the year 2025. In October 2019, the number of digital payments crossed 100 crores for the first time. On the other hand, in October 2021, it crossed 10 thousand crores in value.
According to the trends observed, it can be noted that this substantial shift to digital payment methods is permanent and the growth has been steady in the last two years. Moreover, mobile devices are expected to remain the most preferred tools for digital payments in the coming years.
Efforts by the government to create a cash-less society have led to an increased awareness among the users, building their interest in digital payments.