SECTION IV: ABOUT OUR COMPANY

INDUSTRY OVERVIEW

Unless otherwise indicated, the industry-related information contained in this section is derived from an
executive summary of a report titled “India ATM Market Outlook to 2026” dated August 2021 (the “Ken ATM
Report”) and a report titled “India Payment Services Market Outlook to 2026” dated August 2021 (the “Ken
Payments Report”, and together with the Ken ATM Report, the “Ken Reports”), both prepared by Ken
Research Private Limited. We commissioned Ken Research Private Limited on July 9, 2021 for the Ken Reports,
and paid for such report for an agreed fee only for the purposes of confirming our understanding of the industry
in connection with the Offer. Industry publications are also prepared based on information as at specific dates
and may no longer be current or reflect current trends. Accordingly, investment decisions should not be based
on such information. See “Certain Conventions, Presentation of Financial, Industry and Market Data —
Industry and Market Data” on page 19.

Overview of the Indian Economy

The Indian economy was the third largest economy in terms of purchasing power parity as of calendar year
2020. For the financial year 2021, India’s gross domestic product (GDP) per capita on purchasing power parity
basis was estimated at US$7,333. Source: Central Intelligence Agency.) The world economy grew by 1.7% in
2019, declined by 3.2% in 2020, and is expected to grow by 6.0% and 4.9% in 2021 and 2022, respectively, as
per International Monetary Fund projections. The Indian economy grew by 7.2% in financial year 2020 but
declined by 2.9% in financial year 2021 due to the COVID-19 pandemic. In the future, India is set for a robust
economic recovery, with an estimated real GDP growth of 9.5% in calendar year 2021 based on International
Monetary Fund projections. India’s expected real GDP growth of 8.5% in 2022 is much higher than that of other
major economics and the global average of 4.9%. As the economy stabilizes to a healthy growth of 7% to 8%
CAGR in real GDP thereafter, India’s GDP (at current prices) is expected to be 2362 trillion (US$4.8 trillion) by
2025. As a result, India is expected to become the third largest global economy by 2030 from sixth largest in
2020, according to the Center for Economics and Business Research.

Strong Growth in Payments Industry

GDP growth, surge in private consumption and government initiatives towards promoting the Indian economy
through “Made in India” strategies have resulted in strong growth in the payments sector. The number of
transactions grew from 31,383.9 million in financial year 2019 to 46,405.8 million in the financial year 2021,
although the value of transactions declined from 21,739,214.4 billion to 1,471,579.0 billion in financial year
2021 due to the COVID-19 pandemic.

The following table sets forth the number of transactions based on volume:
(in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Parameters Financial Year
2019 2020 2021
UPI 5,391.5 12,518.6 22,330.7
Usage at ATM 9,869.4 8,798.7 6,100.9
Usage at POS 6,176.9 7,276.8 5,818.2
Prepaid 4,607.2 5,331.8 4,939.2
IMPS 1,752.9 2,579.2 3,278.3
NEFT 2,318.9 2,744.5 3,092.8
Paper Clearing 1,123.8 1,041.4 670.4
RTGS 136.6 150.7 159.2
BHIM Aadhaar Pay 6.8 9.1 16.1
Total 31,383.9 40,450.8 46,405.8

 

 

 

 

 

Source: India ATM Market Outlook to 2026, Ken Research, August 2021.
Usage at ATM describes the financial transactions at the ATMs. Usage at POS include debit and credit card transactions and does not
include AePS.

“Excluding non-financial transactions

RBI has stopped reporting non-financial transactions at ATMs since October 2019.

Note: RBI has made changes in their reporting of transactions at ATMs. In a circular dated August 14, 2019, RBI announced the following
points: (1) transactions which fail on account of technical reasons such as hardware, software, communication issues; non-availability of
currency notes in the ATM and other declines ascribable directly/wholly to the bank/service provider and invalid PIN/validations. shall not

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