In terms of the value of payment transactions, the market is expected to more than double, from Rs 265 trillion to Rs 593 trillion over the same period, it said.
Representative Image (Photo: iStock)
A report by PwC India on Wednesday said the number of digital transactions in India is expected to increase more than threefold, from 159 billion transactions in 2023-24 to 481 billion by 2028-29.
In terms of the value of payment transactions, the market is expected to more than double, from Rs 265 trillion to Rs 593 trillion over the same period, it said.
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The report titled, “The Indian Payments Handbook 2024-29” said, “The innovation in technology spans issuance and distribution strategies to penetrate deeper into the domestic market for various payment solutions, promotion and regulation by the Government and regulators, and the emergence of innovative technologies to enhance user experience and risk measures to safeguard customers.”
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The United Payments Interface (UPI) currently has a transaction volume growth trajectory of 57 per cent. From 131 billion transactions currently, the number of UPI transactions is likely to jump to 439 billion by FY29, it added.
Today, UPI accounts for over 80% of overall retail digital payments in India and is expected to contribute 91% by 2028-29.
Credit cards have continued to hold ground amid the rise of UPI. They have witnessed growth in 2023-24, with the industry adding more than 16 million credit cards, crossing the milestone of 100 million cards in force.
“With the addition of new cards, the industry has also seen a 22% and 28% surge in transaction volume and value, respectively,” the report said.
It added that the credit card transactions are expected to reach 200 million by 2028-29.
“Innovations in this space, such as soundbox, cross-sells to merchants, and innovative activation strategies, have also promoted the use of digital payments by merchants,” the report said.
“Additionally, efforts to promote via the Payments Infrastructure Development Fund (PIDF) have accelerated the growth of the payments infrastructure in the country,” it added.
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