According to NITI AYOG, the digital payments market In India is all set to grow to $1 trillion by 2023 led by growth in mobile payments, which are slated to rise from $10 billion in 2017-18 to $190 billion by 2023.
The Digital Payment ecosystem in India is undergoing a transformation with the entry of global tech giants like Google’s payments app that are acting as aggregators for retail transactions.
Paytm – which has 7 million merchants – now becoming a bank and post the launch of Google Tez and PhonePe, which are also focusing on merchant payments, a steep rise in digital payments could be expected.
While the number of PoS (Point of Sale) terminals has doubled since demonetization, the merchant acquisition infrastructure (is a mechanism of providing necessary infrastructure and facilitating payment for goods and services purchased through medium of a card) in India remains weak, as banks have not been able to drive adoption. This sector presents immense opportunities for digital players.