UPI transactions are growing very fast in the country. In the last financial year, about 75% of the transactions in the retail segment were done through UPI only. The latest report by PwC states that by 2026-27, the number of UPI transactions in the country will reach 100 crores per day. This will be up to 90% of retail digital payments.
PwC India has released a report regarding digital payments. It has been said that in the next 5 years, the speed of UPI transactions will increase very fast and by 2026-27, 100 crore UPI transactions will start happening every day.
UPI transactions will reach 75 to 90%
In a report titled ‘The Indian Payments Handbook – 2022-27’ (The Indian Payments Handbook: 2022-27), PwC has said that UPI payments are growing rapidly in the country. UPI payment accounted for about 75% of the total transactions in the retail segment in the financial year 2022-23. This will increase year by year. PwC estimates that UPI’s share in retail digital payments will increase to 90% in the next 5 years.
Digital transactions can increase so much
According to a PwC report, the Indian digital payments market is expected to grow at a CAGR (volume) of 50% and touch 41,100 crore transactions by 2026-27, from 10,300 crore in FY 2022-23.
Credit card and debit card growth
PwC said in its report that apart from UPI, the credit card segment will also grow rapidly in the country and may grow at a CAGR of 21% in the next 5 years. By the financial year 2024-25, it will also leave behind the debit card in volume.
At the same time, the growth of debit card can be 3% during this period. The major reason behind the low growth of debit card has been told that it has been generally used for cash withdrawal, but with the introduction of UPI payment system, its usefulness has reduced. Now people rarely need cash for shopping.
Mihir Gandhi, Partner and Payments Transformation Leader, PwC India said, “The payments sector is expected to focus on expansion of the ecosystem and new use cases for existing payments platforms over the next 5 years. In the ever-evolving Indian payments landscape, innovation and inclusion are paving the way for a seamless digital economy.
