Between 2019 and 2023, India is expected to achieve the fastest growth in digital payments transaction value, ahead of the US and China. Yes, you read it right!
A recent study conducted by ASSOCHAM-PwC India, has revealed a projected value of $135.2 billion in 2023 that will be contributed by Digital Payments. This expected to be the fastest growth with a compounded growth rate of 20.2 percentage. The growth of this phenomenon is heavily contributed by increase in internet penetration across the country and a favorable regulatory environment.
Though the numbers have been in favour for digital transactions, creating a robust payment ecosystem is still in the making. This also serves as a hindrance to the growth of digital payments. While e-commerce platforms adopt digital payments, consumers are still preferring COD as a preferred choice of payment. This has also been a result of the increase in cyber attacks the country witnessed. Also another challenge the country faces is to expand payment and acceptance points across the country, and to ensure it reaches the nook and corners of the country. Despite 1 billion debit cards and 50 million credit cards being issued to date, acceptance has only been possible at 3.5 mln PoS devices. Transactions per device has also been low.
As compared to the cost of setting up ATMs, PoS terminals are easier to set up – financially, infrastructurally and operationally more affordable as well. A hand held device that can be placed anywhere and everywhere with requirement of only internet service, makes the payment process more convenient and secure. Also, the increase in usage of
Debit cards at PoS that is expected to be at least 44% of total debit card usage by 2021, has made this is a viable and profitable choice.
Subsidised transaction fee payable by the merchant for debit cards and UPI has also become another vital reasons for vendors to choose mobile, digital PoS and digital transactions.
Nandan Nilekeni-headed Reserve Bank committee in their recent report has recommended carpet bombing the India country side with PoS machines in order enable the kind of growth the government is looking at in terms of digital payments. Making mobile phone one’s common point to carry on transactions is the very idea of this recommendation.
We at Bijlipay strive to ensure the availability of PoS devices across the country, and help our nation progress and hit the bigger number in years to come. Our PoS solutions are here to give more access to digital payments and reduce the hassle of cash payments.