A report from Redseer Strategy Consultants forecasts that by 2027, Unified Payments Interface (UPI) will lead 90% of payments in India, a testament to the country’s rapidly evolving digital payment landscape.
This surge is largely attributed to the affordable internet data rates and a massive subscriber base of 800 million users, with 350 million actively engaging in digital transactions.
The rise of UPI has been a boon for 70% of the country’s retail merchants, who have witnessed a noticeable increase in sales due to the ease and accessibility of UPI payments. The factors driving this widespread adoption include user-friendly interfaces, robust security protocols, and increasing merchant acceptance across the nation.
Interestingly, the next phase of UPI’s growth is expected to be fueled by areas outside India’s top 40 cities, indicating a nationwide embrace of digital payments. Furthermore, UPI’s influence extends beyond mere transactions; it has catalyzed innovation and expansion within the fintech industry. Leading market players are diversifying into new domains such as credit, commerce, wealth management, and insurance, spurred by the popularity and versatility of UPI.
In the realm of wealth management, the advent of electronic Know Your Customer (eKYC) processes has revolutionized the sector. The integration of eKYC and Account Aggregators has significantly accelerated loan processing, allowing lenders to extend their reach beyond India’s Tier-1 cities. As the fintech landscape continues to evolve, firms are actively exploring partnerships with NBFCs. The emergence of BNPL services is poised to bridge the credit gap in the country, the report observes.
