By 2025, India could witness around Rs. 1 lakh crore worth of digital transactions every year with more than 80% of the transactions happening digitally, mainly being driven by higher adoption of Unified Payments Interface (UPI).
There could be 3 billion connected devices by 2025 and merchant adoption of payments could go up by 10
The rise will also bring cyber security risks and the cost of managing the attacks could rise to $20 billion from around $4 billion currently.
The findings of their new research reinforce a view that flexible, scalable and reliable technology will be critical to the future of payments in India as the market continues to experience incredible growth.
Consumer demand, policy push from the government, disruptive technology and services like taxi payments and ecommerce growth as major factors helping growth of digital payments.
Rapid rise in internet users nationwide is giving rise to an increase in digital transactions. However, the Indian market is still to mature and remains threatened due to lower awareness levels in rural areas.
The other issue that could arise is the reluctance of the age group of 45-60 to use technology.
Another issue is that many people still refrain from using cards. Although the number of card users is rapidly rising, there is still an untapped area in that segment.
Hence, it is necessary that the rise in digital transactions remain holistic thereby supporting growth with scalable processing platform. Also, it should be accompanied by allied precautionary measures such as cyber security and fraud prevention.
