Digital transactions have recovered from their lows in the months of the lockdown and gained traction over the
rest of the year with a growing preference for contactless transactions and tailored financial offerings by fintech
players to adapt to the needs of end-users.

India’s payment services market size based on transaction volume and growth rate, during the
financial years 2016 to 2021 (in billions)

     
  

  

  

50.0 asx 56% 4.4 60% _
40.0 a 50% =
» 40% §
2 300 24.6 6
309
3 20.0 15.8 25% 30% &
$ 10.9 20% =
0.0 oH 0%

FY16 FY17 FY18 Fy19 FY20 FY21

mmm Volume (In Bn) =—&-Volume Growth Y-O-Y

Note: India's payment services market has been defined in terms of total transaction volume and total transaction value done
through RTGS, paper-based instruments, credit transfers, debit transfers and direct debits, card payments, and PPIs through
offline and online mode.

Note:

1. RTGS system includes customer and inter-bank transactions only.

2. Settlement of CBLO, government securities clearing and forex transactions is through the Clearing Corporation of India Ltd.
(CCIL). Government securities include outright trades and both legs of repo transactions and tri-party repo transactions.

3. UPI and AePS (Fund Transfer) were introduced in financial year 2017; BHIM Aadhar Pay and NETC (linked to bank account)
were introduced in financial year 2017.

Note for financial year 2021:

1, Data is provisional.

2. ECS (debit and credit) has been merged with NACH with effect from January 31, 2020.

3. Data from November 2019 onwards for card payments (debit/credit cards) and prepaid payment instruments (PPIs) may not be
comparable with earlier months/periods, as more granular data is being published along with revision in data definitions.

4, Only domestic financial transactions are considered.

Total Payment Services Market does not includes CCIL-operated systems, which are a part of settlement systems.

Source: RBI, India Payment Services Market Outlook to 2026, Ken Research, August 2021.

Payment services market size based on transaction growth rate, during the financial years 2016 to
2021 (& in trillion)

   

2000.00 21% 1720.98 += 1701.31 30%
20% 1471.12 n9% é
1500.00 1201.96.  1451,80 3
1002.24 10% ©
1000.00 %
o% £
5
500.00 10% &
-14% 2

0.00 -20%

FY16 FY17 FY18 FY19 FY20 FY21

mmm Value (IN INR Trillion) = ==Value Growth Y-0-Y

Source: India Payment Services Market Outlook to 2026, Ken Research, August 2021.

India’s Payment Services Market Future Outlook and Projections

Growth in digital payments in India has been driven by multiple factors such as the launch of new and
innovative payment products, increased demand for cashless transaction due to COVID-19, increasing

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