smartphone adoption, a growing need for faster payment modes, and a strong push from the Gol and regulators.
towards adoption of digital channels. Prior to 2010, digital transactions saw single-digit growth.

COVID-19 has further accelerated the shift to digital payment modes. One of the key requirements for long-
term growth and a faster adoption of fintech solutions at last-mile touch points is the customer’s trust in digital
payment modes.

India’s payment services market future projections based on transaction volume and growth rate,
during the financial year 2021 and estimated for the financial years 2022 to 2026 (in billions)

   

150.0 125.9 80%
108.7 on
100.0 60% g
25.4% = 40% 5
50.0 oy
15.8% 20% 2

0.0 0%

FY21 FY22E FY23E FY24E FY25E FY26E

mmm Volume (In Bn) =i=Volume Growth

Note: E refers to estimated numbers.
Source: India Payment Services Market Outlook to 2026, Ken Research, August 2021.

India’s payment services market future projections based on transaction value and growth rate, during
the financial year 2021 and estimated for the financial years 2022 to 2026 (in trillions)

     

3000.0 1609.2 20%
9% = 1712.9 1816.5 = 1920.2, 2023.8 gy, &
2000.0 1471.1 9 g
5% )9/ cS
1000.0 re
H -10% @

0.0 -20%

Fy21 FY22E FY23E FY24E FY25E FY26E
mam Value (In INR Trillion) © —™—Value Growth Y-o-Y

Note: E refers to estimated numbers.
Source: India Payment Services Market Outlook to 2026, Ken Research, August 2021.
India Payment POS Terminal Market
Market Overview
A payment POS terminal is a computerized replacement for a cash register, where customers can make a digital
transaction with the help of their debit and credit cards. A customer needs to enter a security PIN in order to
execute a transaction using a payment POS terminal. All accounts are settled when the merchant does the batch
settlement at the end of the day and the respective amount after deducting bank charges is credited to the
merchant’s account.
Payment POS terminal companies earn their revenue through three channels, namely: initial device set up fees,
MDR and monthly rental income, which is estimated at 21,000 million to 3350 million for mPOS devices and
2400 million to 2750 million for traditional POS devices.

The MDR paid by the merchant is divided among three entities: the issuer bank, which issues the debit card and
gets the highest share of the MDR, the acquirer, which installs the payment POS and the switch network.

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