Why digital payments are booming in India

Digital payments in India have grown by 12.7% over the last year, according to a new report by accountancy giant KPMG.

The firm’s report looked into India’s FinTech scene in general and its digital payments sector in particular.

It stated that the evolution of cashless payments can be attributed to progressive thoughts of the Reserve Bank of India, central and state governments, industry associations and payment companies.

For instance, the Reserve Bank of India has pledged to endeavour to make digital payments in India smooth, efficient and affordable. It recently made digital payments a key focus of its vison for 2021.

KPMG revealed that in the last three years, the number of merchants accepting digital payments has jumped from 1.5 million to ten million.

Smartphones have also been a big reason behind the rise of digital payments. With more people adopting the tablets, phablets and smartphones, there have been more opportunities to adopt technology like QR code-scanning, voice banking and digital payments.

The accountancy firm stated that QR-based wallet acceptance points with low setup costs have played a particularly big role in driving the growth of digital payments, the adoption of merchants and creating an environment enabling the growth of digital payments.

It stated that the mobile wallet market is expected to grow at an annual compound rate of about 52.2% until 2023.

And digital payments are expected to keep growing. KPMG expect that the digital transaction value will grow by 20.2% between 2019 and 2023.

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