Payment digitization was indeed a big leap towards the objective of achieving a payment system that was quick, easy, fast, and reliable. Perhaps one of the greatest benefits of digital transfers is that it speeds up the process of payment and no lengthy paperwork has to be filled in. There is no need to wait in a queue to withdraw cash from an ATM or to carry cards in the wallet. Also, banking facilities would be open to consumers on a 24/7 basis and all days of the year, including bank holidays, with the switch to digital.
The possibilities are infinite as more customers become technologically savvy, particularly as we are only now tuning into the unparalleled opportunity of global mobile penetration with 3.2 billion smartphone users in 2020 against a global population of approximately 7.7 billion. The influence of COVID-19 has further increased the change in payment habits, partly due to ease and partly due to guidance and focus on eliminating physical cash where feasible. In 2019, about 2.1 billion users have used mobile wallets. And by the end of 2020, this market is bound to rise. Users can register for free at Global Market Database to understand the market forecast for Digital Payment Market for the next ten years. Global Market Database is a world’s first dynamic Market Research Platform which provides free market research tools.
As per a report, India’s digital payment market in 2019-2020 was worth around Rs 2,162 trillion and is projected to rise more than three times in the next five years due to government initiatives on financial inclusion and rising retailer digitization. Over the next five years, cumulative mobile payment subscribers, currently standing at around 162 million, are projected to cross around 800 million. Digital transactions in India rose 55% last year, compared with 48% in China, according to data from the Bank for International Settlements (BIS). This was largely the product of the deep smartphone penetration of India’s vast population that was underserved by the conventional banks. As a result, digital payments have increasingly become a transaction process, which also got a lift from the Unified Payments Interface (UPI), which makes real-time payments between bank accounts simpler.
Moving to the digital payment model for countries such as India indicates that there is a huge need and opportunity to get all the stakeholders in the payment value chain into the digital framework. Given that financial networks and links to banking facilities are largely situated in urban areas, the transfer of all individuals to the digital network poses tremendous challenges. Also, most merchants lack POS devices, and this is where the trick can be performed by service providers such as Paytm and the government’s newly introduced BHIM App. Global Market Database is an effective Market Research Software that gives its users Market Research Reports For Free.
In India, three out of four money transfers are carried out by cash due to only a third of the population of India having access to the internet. In comparison, 20% of Indians have no bank accounts. There has been a gradual but steady drive into digital payments since 2016 and has now seen an increase in adoption since the outbreak of the COVID-19 virus. Digital payments are expected to continue to be impacted and influenced by the outbreak, but the infrastructure and mobile phone penetration enable digitalization for steady growth.
