India Payment Services Market

Non-Cash / Digital Mode** - 11% of the payment transactions are
digital with ~31% share in transaction value

(Total Number of Transactions — 25,858.7 Million)

(Growth Rate - 29.0%)

 
      
     
 

Cash Mode*

89% of transactions are
cash based with ~69%
share in transaction
value

Payment Gateways

(Market Size — INR 114,102.1 Million)
(Growth Rate - 41.0%)

  

Payment Aggregators

PayPal and Others)

POS Terminal Devices
(Total - 4720.1 Thousand)
(Growth Rate ~ 6.5%)

Merchants / Vendors
(Large Enterprises and SMEs)

 

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M-Wallets
(Total Number of Transactions - 3998.70 Million)
(Growth Rate - -16.0%)

Payment Modes
(Total Number of Transactions in Million)

 

Semi-Closed Loop Wallets
(Total Number of
Transactions —

UPI - 22,330.65 Million; Growth - 78.4%
IMPS — 2,863.8 Million; Growth - 99.2%
AePS — 3,921.04 Million; Growth - 68.3%

BHIM-App — 250.61 Million; Growth - 24.7%
CUG Cards - 940.5 Million; Growth - -13.6%
Credit Cards - 1,772.52 Million; Growth - -19.4%
Debit Cards - 10,146.6 Million; Growth - -26.9%

Open Loop Wallets
(Total Number of
Transactions - 879.71

 

Note: Growth rate mentioned above is for the financial year 2021.

* In overall transactions, cash payments had a share of 69% in terms of transaction value whereas, in terms of total transaction volume,
cash payments were evaluated at 90% in the financial year 2021.

** In overall transactions, non-cash/digital payments had a share of 31% in terms of transaction value whereas, in terms of total
transaction volume, non-cash/digital payments were at 10% in the financial year 2021.

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

India’s Payment Services Market Size

The Indian digital payment space has seen extraordinary growth in the last few years, with the volume of
transactions increasing at a CAGR of 36%. New and innovative payment products such as UPI, NETC, FASTag
and BBPS have contributed to the growth of the digital payment industry.

With the emergence of new payment technologies and use cases across sectors, this growth momentum is
expected to continue. Transactions saw a minor drop in the early months of the financial year 2021 and have
now begun to go back to pre COVID-19 levels. Businesses are now looking to integrate both online and offline
channels to provide an omni-channel experience to their customers. UPI transaction volumes have already gone
back to pre-lockdown levels. Similar trends can be observed in NETC transactions.

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