India’s retail digital payment may double to US$ 7 trillion by 2030: Report

In India, the digital retail payment sector is poised for significant growth, with transactions projected to potentially double to US$ 7 trillion by 2030, as indicated by a joint study conducted by Kerney and Amazon Pay. This growth is fuelled by a 138% increase in Unified Payment Interface (UPI) transactions from 2018 to 2024, leading to retail digital payments reaching US$ 3.6 trillion in the financial year 2023-24. The shift towards cashless transactions is becoming more pronounced, with consumers and businesses showing a growing preference for digital payment methods, particularly through UPI transactions.

The study also underlines the changing landscape of digital payments in India, emphasizing the importance of expanding access to lower-income groups and smaller towns. While urban centers currently lead in digital payment adoption, there is a gradual uptake of digital transactions in smaller towns, signalling a broader societal move towards a cashless economy. This transition presents opportunities and challenges, such as the need to enhance cybersecurity measures to protect digital transactions and build trust in the reliability of digital payment systems. By prioritizing inclusivity and security, India can pave the way for a more resilient and accessible financial ecosystem.

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