Digital payments to rise to a $500 billion ecosystem in India by 2020: Report
The report further said that physical point-of-sale like kirana and unorganised retail will drive 60% of digital payments value.
Digital payments system in India is expected to grow to $500 billion ecosystem (approximately Rs 33.26 lakh crore) by 2020. About 15% of India's GDP will flow through digital payments, according to a Google BCG report.
The report further said that physical point-of-sale like kirana and unorganised retail will drive 60% of digital payments value. This is as 50% of person-to-merchant transactions will be for less than Rs 100.
The digital payments will see 50% of it being done through mobile phones. Apart from this, the top 100 million internet users will drive 70% of digital payments value.
The report also said that 81% digital payment users prefer it to other non-cash payment methods. Convenience ranks the top as 66% users are primarily said it was the reason, while 48% find offers the largest appeal for use. In terms of growth of business, 75% merchants believe that accepting digital payments will grow their business.
The Google BCG market study was based on a Nielsen Survey of 3,500 respondents comprising of users, merchants and remittance users, across nine cities Delhi, Mumbai, Bangalore, Ludhiana, Lucknow, Indore, Surat, Vishakapatnam and Coimbatore.
The report also highlighted some of the potential game UPI, Bharat Bill, Payment Bank, Technology and innovations, increase in physical point-of-sale acceptance and increasing smartphone penetration.