India Consumer Tech Numbers (Part 3)

Digital Payments

Policybazaar offers the big picture:

Additional info via Paytm:

And this on household debt as % of GDP, which shows China at 5X and the US as 7X of India.

Fino offers an overview of the various players using digital medium across different financial segments:

A chart from Paytm shows the exponential growth in digital payments:

More from Fino on the rise of digital payments (above was in dollars, below is in Indian rupees)…

… and retail payments:

Mobile payments expected to reach ~ US$ 3.1 trillion by value by FY 2026rising 5X from 2021, as per Paytm. The digital payments funnel looks like this:

Some additional data points:

  • 65 million merchants of which 45 million have access to internet – Paytm
  • 30-35 million unique merchants are using QR codes for digital payments in India and expected to increase to 55-60 million by FY 2026 – Paytm

More data from Paytm:

  • Total outstanding loans in India expected to double to $1 trillion to 2026 from $550 billion in 2021
  • BNPL (buy now pay later) is expected to grow 5-6X to $90-100 billion by 2026
  • MSME loans expected to grow from $375 billion in 2021 to $600 billion in 2026

One of the reasons for the digital opportunity is because of the low penetration of bank branches and ATMs in India, as detailed by Fino:

An additional insight from Fino: In India, there were 4.7 million PoS terminals and 0.24 million ATMs deployed across the country as on March 31, 2021. ATMs and PoS terminals have grown at a CAGR of 4% and 28%, respectively over the past five years.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.