Making Covid-19 pandemic a stepping stone, the digital payments in India that have swelled to 25.5 billion real-time online transactions in 2020 is set to account for a 71.7 per cent share of all the payments in India by 2025, a ACI Worldwide report said on Wednesday.
ACI Worldwide that provides payment solutions to corporations across the globe in its report claimed that digital transactions in India have surpassed that of China, which accounted for 15.7 billion transactions in 2020, reports Economic Times.
According to the report, the US was ranked ninth with 1.2 billion digital transactions.
The report says cash and cheques, the other payment alternatives, will occupy only 28.3 per cent share by 2025.
By 2025, these transactions are likely to change with instant payments becoming 37.1 per cent, electronic payments 34.6 per cent, and cash and other paper-based payments’ share reducing to 28.3 per cent, the report said.
Further the share of real-time payments volume in overall electronic transactions will exceed 50 per cent in 2024. The report claimed that there was a collaboration between the government, the regulator, banks and Fintechs in India, “which has helped to advance the goal of enabling financial inclusion and also provided rapid payments digitization for citizens,” ACI Vice-President Kaushik Roy said.
The global report also claimed that India, China, South Korea, Thailand and the UK rank in order as top-5 countries generating real-time transactions in 2020. Mobile wall adoption rose to a historic high of 46 per cent in 2020, up from 40.6 per cent in 2019 and 18.9 per cent in 2018. Countries like Brazil, Mexico and Malaysia where many people historically relied on cash are now some of the fastest adopters of mobile wallets, the report said.