As per a recent report by RedSeer, Bengaluru-based research and advisory firm, Digital payments in India are expected to grow over 3x to Rs 7,092 trillion by 2025, which was worth around Rs 2,162 trillion in 2019-20.

The report also stated that this growth is based on taking into account various government policies around financial inclusion and growing digitisation of merchants.

As per the report,

“Mobile payments will drive around 3.5 % of total digital payments of Rs 7,092 trillion by financial year 2025, up from the current 1 %. The total mobile payment users, currently numbering about 162 million, would reach around 800 million during this period.”

Redseer also perceives COVID-19 as an accelerator of digital payments across India.

Also, due to safety concerns, digital payments share of grocery stores increased to 75% due to COVID-19, the report stated.

Talking about the effects of COVID-19 on digital payments, Anil Kumar, Founder and CEO of RedSeer Consulting, said,

“COVID-19 seems like another demonetisation-like catalyst for the industry. Digital payment providers have been quite hands-on in terms of responding to this situation, by offering enhanced support on essentials such as offering groceries, masks, sanitisers, COVID-19 insurance, offering integration with donations to PM fund and other essential product and services.”

Need legal assistance for your startup? Just contact us.

Follow us and connect with us on Instagram, Facebook, and LinkedIn.