I’m on a roll. Last post on this. Cheers Anton20-Point Summary...

I’m on a roll. Last post on this. Cheers Anton

20-Point Summary of the Indian Payments Handbook 2024-2029:

1.Digital Payments Growth: India’s digital payments are projected to triple in volume from 159 billion in FY 2023-24 to 481 billion by FY 2028-29, with transaction value expected to more than double.

2.Unified Payments Interface (UPI): UPI remains the dominant payment method, accounting for over 75% of retail digital payments in FY 2023-24. Its transaction volume is projected to reach 439 billion by FY 2028-29.

3.Credit Cards Expansion: The credit card market crossed 100 million cards in FY 2023-24 and is projected to reach 200 million by FY 2028-29, with increasing adoption in Tier II and below locations.

4.Merchant Acquisition: QR code deployments grew by 34% in FY 2023-24, while point-of-sale (POS) deployments increased by 14%. Soundbox technology is gaining traction for merchant transactions.

5.Emerging Business Payments: Digitization of B2B payments is accelerating with innovations in connected finance and the adoption of virtual cards for secure and streamlined transactions.

6.Cross-Border Payments: India leads globally in inward remittances, receiving USD 125 billion in 2023. The RBI is implementing policies to lower remittance costs and enhance cross-border payment systems.

7.Prepaid Payment Instruments (PPIs): While PPI growth has slowed, integration with third-party UPI platforms is expected to drive adoption and innovation.

8.FASTag and NETC: The adoption of FASTag for toll collection remains high, but growth has stabilized due to market saturation. New innovations like GNSS aim to eliminate toll plaza wait times.

9.Bharat Bill Payment System (BBPS): BBPS has expanded its scope, now supporting cross-border payments and a wider range of payment categories. Transaction volume and value saw significant YoY growth.

10.Buy Now, Pay Later (BNPL): BNPL continues to grow as a preferred payment option, particularly among younger demographics, boosting digital wallet adoption.

11.Payment Aggregators (PAs): Regulatory frameworks for online and offline PAs have been introduced to ensure comprehensive oversight and support innovation.

12.Cybersecurity Enhancements: The RBI is adopting measures like biometric and face ID authentication for UPI transactions to improve security and reduce fraud.

13.ISO 20022 Compliance: The transition to ISO 20022 for RTGS systems aims to enhance data analytics and global interoperability.

14.Global UPI Expansion: Strategic partnerships are enabling UPI’s international adoption, making it easier for Indian travelers and foreign visitors to use the system.

15.Big Data and AI: Payment providers are leveraging data analytics to enhance fraud detection, personalize services, and optimize business strategies.

16.Decline in Debit Card Usage: Debit card transactions have declined as UPI’s convenience and zero MDR charges attract small and medium merchants.

17.Commercial Credit Cards: Small businesses are increasingly adopting commercial cards for interest-free credit and integrated financial tracking solutions.

18.E-Commerce Growth: Widespread internet access and smartphone adoption are driving digital payments in online marketplaces.

19.Regulatory Sandbox: Initiatives like fraud prevention tests and year-wise digital payment targets are fostering innovation in the FinTech ecosystem.

20.Sustainability in Payments: The future focus includes sustainable margins, new payment use cases, and regulatory interventions to balance innovation and compliance.