Digital payments in India to grow threefold from 159 billion in FY24 to 481 billion by FY29: PwC

India's digital payments industry is experiencing a substantial surge, with transaction volumes growing by 42% YoY in FY24, according to a recent PwC report. The industry is projected to grow threefold, with transaction volumes expected to rise from 159 billion in FY24 to 481 billion by FY29. The market value is anticipated to nearly double during this period, expanding from US$ 3.16 trillion (Rs. 265 trillion) to US$ 7.06 trillion (Rs. 593 trillion) by FY29.

The Unified Payments Interface (UPI) remains at the forefront of India's digital payments revolution. UPI transactions grew 57% YoY in FY24, surpassing 131 billion transactions. By FY29, UPI transactions could reach 439 billion, representing 91% of India's retail digital payment transactions. In FY23 alone, UPI accounted for over 75% of the total transaction volume, with UPI transactions valued at US$ 2.38 trillion (Rs. 199.9 trillion). The report predicts daily UPI transactions could hit 1 billion by FY28 and potentially soar to 1.4 billion by the end of FY29. As UPI's dominance grows, the use of debit cards is declining in transaction volume and value, with consumers increasingly preferring UPI for its convenience. Expanding digital payment infrastructure, including QR code usage and innovations like soundboxes and merchant cross-selling, is driving further adoption, especially in Tier 2, 3, and 4 cities.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.