Jaipur | Business Remedies | Charu Bhatia | The demonetization policy in India had a significant impact on the country’s economy, but it also accelerated the growth of digital payments in India. Prior to demonetization, digital payments accounted for only about 10% of all transactions in India, but that number has grown to over 20% in the years since.
The growth of digital ecosystem in India has been driven by a number of factors, including the government’s push towards digitalization, an increase in internet and smartphone penetration, and the rise of e-commerce. The Indian government has been actively promoting the use of digital technologies through various initiatives such as Digital India, Make in India, and Startup India. These initiatives aim to increase the use of digital technologies in various sectors such as healthcare, education, and agriculture, and also to create a conducive environment for start-ups to flourish. The increase in internet and smartphone penetration in India has also played a major role in the growth of the digital ecosystem. According to a report by the Internet and Mobile Association of India, the number of internet users in India is expected to reach 800 million by 2023. This increase in internet users has also led to an increase in the number of mobile wallet users in India, which is expected to reach 900 million by 2025.
With government’s mission to target 2,500 crore digital transactions in 2017-18 Union Budget through UPI, USSD, Aadhar Pay, IMPS and debit cards for promoting digital payment transactions in the country, this has been a significant step towards the government’s goal of increasing the use of digital payments and reducing the dependence on cash transactions.
The digital payments ecosystem in India has grown significantly in recent years, driven by a combination of government initiatives, an increase in internet and smartphone usage, and the rise of e-commerce. One of the key initiatives is the launch of the Unified Payments Interface (UPI), which allows for real-time inter-bank transactions, and the Bharat Interface for Money (BHIM) app, which simplifies the process of making digital transactions. UPI (Unified Payments Interface) has seen significant growth in India since its launch in 2016 by National Payments Corporation of India (NPCI). Statistics showcase the increasing popularity and adoption of UPI as a convenient and secure platform for digital transactions in India.
The increase in internet and smartphone penetration in India has also played a major role in the growth of the digital payments ecosystem. E-commerce has also been a major driver of the growth of the digital payments ecosystem in India. The e-commerce market in India is expected to grow at a CAGR of 31% and reach $200 billion by 2026. The growth of the e-commerce market has led to an increase in the number of online shoppers in India, which is expected to reach 220 million by 2025. The digital payments ecosystem in India is also supported by a number of other private players as well. These players offer a range of digital payment services such as mobile wallets, UPI payments, and QR code-based payments. Another major achievement of the DigiDhan Mission has been the creation of a digital infrastructure for financial transactions. The government has implemented a number of measures to promote the use of digital payments. The DigiDhan Mission has also aimed to increase the number of digital transactions in India. The government has set a target of 25 billion digital transactions by March 2018, which was exceeded with 40 billion digital transactions. The government has also launched several initiatives to promote the use of digital payments in rural areas, including the launch of the Common Service Centers (CSCs), which provide digital services to citizens in rural areas.
Source: www.nic.in
Written & Edited By:
Charu Bhatia
