By 2025, it is estimated that out of all payments, almost 71.7% of those, would be done digitally. Let's find out what is the driving force for this boom in these numbers.

Innovative technologies

The unfolding of new and improved technologies is one of the main factors for the growth of digital payments in India. Secure and easy-to-access technologies ensure greater opportunities to small time business owners and also guarantees safe and regulated transactions.

Increased awareness and acceptance

India's digital payments market has witnessed tremendous growth over the past few years, which has gained popularity especially after the demonetization in 2016. The people of India are now more comfortable with digital payments than ever before mostly due to the ease of payments and also with just a few clicks. The growing number of initiatives like UPI, BHIM, RuPay, introduction of QR Codes, and other easy payment options has led to the increase in acceptance and awareness about the changing digital payment ecosystem of the country.

Rising e-commerce

Online transactions would continue to boost the digital payments market of the country. The Covid-19 pandemic saw customers taking to net banking and other digital payment facilities in categories like essential goods, groceries, retail, medical supplies, education, and others. Many e-commerce platforms are also promoting digital transactions by accepting payments only through online payment facilities.