Mobile wallet adoption is soaring in India and is fast becoming the primary payment option, overtaking traditional methods such as cash and cards.
Over the next few years, mobile wallet payments in India are likely to cross the Rs 531.8 trillion mark by 2028, witnessing a compound annual growth rate (CAGR) of 18.3 percent between 2024 and 2028, according to London-based Global Data. and analytics company.
The value of mobile wallet payments in India grew by 72.1 percent between 2019 and 2023, reaching Rs 202.8 trillion ($2.5 trillion) in 2023, according to a Global Data report. a concerted effort to promote digital payment methods, the most prominent of which is a mobile wallet-based instant payment solution – the Unified Payments Interface (UPI).
Last week, the Reserve Bank of India (RBI) said it will soon facilitate cash deposits in banks through the Unified Payments Interface (UPI), traditionally a popular method for peer-to-peer (P2P) transactions, bill payments, business transactions and other digital payments.
Launched in April 2016, UPI had a user base of 300 million by October 2023, Global Data said.
Currently, UPI payments from prepaid payment instruments (PPIs) can only be made using the web or mobile application provided by the PPI issuer. RBI plans to allow the use of third-party UPI apps for making UPI payments from PPI wallets.
Also Read
- Total solar eclipse 2024: Date, time, duration, visibility in India
- Meet Cyrus Mistry’s Sons, India’s Richest Billionaires Under 30
With the change proposed by the RBI last week, it will be possible to deposit cash at Cash Deposit Machines (CDMs) using UPI, which in turn eliminates the need for an ATM or debit card.
According to statistics from the National Payments Corporation of India (NPCI), there were 12.1 billion transactions worth Rs 18.3 trillion ($221.5 billion) in February 2024 – up from 7.5 billion transactions worth Rs 12.4 trillion (150 .1 billion USD) made in February 2023.
Transactions through UPI reached 65.77 billion in the second half of calendar year 2023 (CY23), up 56 percent from 42.09 billion in H2-CY22, according to a report by Worldline, a global leader in payment services.
According to them, the value of these UPI transactions grew by 44 percent YoY in H2-CY23 to touch Rs 99.68 trillion (Rs 69.36 trillion in H2-CY22)
