India’s digital payments industry will grow by 10 times to touch $500 billion by 2020 and contribute 15% of gross domestic product (GDP). According to a new study by Google (Alphabet Inc.) and Boston Consulting Group ever-increasing penetration of smartphones, the entry of several non-banking institutions offering payment services, consumer readiness to adopt digital payments, progressive changes in the regulatory framework will power the trend.
The contribution of non-cash modes of payments, i.e. cheques, demand drafts, net-banking, credit/debit cards, mobile wallets and unified payment interface (UPI), is seen doubling to 40% of the consumer payments segment by 2020. Non-cash transactions will exceed cash transactions in the economy by 2023. Online shopping, utility bill payments and movie ticket purchases were identified as the top three services for which Indian users make digital payments, it added.