These days, technology such as Aadhaar enabled payment solutions have made it easier for people to make their payments and conduct other important transactions online. This is however reflective of the entire ecosystem of such payments in India as such. Reports from the top global advisories are saying that at present the market for digital payments in India is thriving and growing at a compound annual growth rate of 12.7%.
Mobile payment revolution
These reports have made it clear that India right now is witnessing a revolution of sorts in the domain of mobile payments. This has also meant that an increasing number of businesses are now adopting such technology as well.
It was estimated that in 2016-17 fiscal there were 1.5 million locations across India where such payments were accepted. It can be assumed that technology such as the AEPS has played a major role in such growth.
Increase in the number of merchants who are now accepting digital payment
These reports have also stated that in the last 2 to 3 years the number of merchants who are accepting digital payments has increased. It has now crossed the 10 million mark!
What are the experts saying?
They are saying that the technology in this regard has improved a lot and this includes the likes of AEPS software solutions as well. It is such an evolution that has convinced the businesses that this technology can be used to a greater extent.
The global predictions
It is estimated that by 2026 the global market for such payments would hit the 10.07 trillion-dollar mark. It is expected that in India the market would grow at a CAGR of almost 52.2% in the period from 2019 to 2023.
Creating a cycle of convenience
It helps that it does not cost you a lot of money to set up wallet acceptance points that run on QR (quick response) code technology. This is one more factor that has convinced so many such merchants.
Since they are adopting such technology like Aadhaar enabled payment system it has become a lot easier for the buyers as well. This, in turn, has created a system where everybody feels comfortable. This has been good for the ecosystem as well.
The wallet players
These reports are quite clear about the fact that the mobile wallet players have played a major role in this transformation. They have made sure that more people in India are now using these mobile payment systems. It is easy to make payments by using these wallets.
Technology such as Aadhaar enabled payment solution is available everywhere. It is these convenient factors that have contributed to the immense popularity enjoyed by such technology.
UPI real-time payments
UPI (unified payments interface)-based payments done on a real-time basis have a significant role to play in this regard as well. This is something that has been mentioned in these reports as well. Between 2016-17 and 2018-19 the UPI payments have seen a rise at a CAGR of 246%.
What are the contributing factors in this regard?
It is factors such as inter-operability that has led so many people to adopt the likes of the AEPS solution. It also needs to be mentioned in this context that the fact that such technology can be used on different platforms such as mobile wallets have made it a lot popular as well. These factors are leading to its growth.
Conclusion
The increase in the number of modes of online payment has played a major role in this regard. The Reserve Bank of India too has stated that by 2021 there would be a 50% increase in the number of mobile-based payment transactions.
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