- Adoption rate of fintech services in India is at 87%, far surpassing the global average of 67%.
- NPCI eyes 1b UPI transactions per day in the coming years.
India’s fintech industry is poised for extraordinary expansion, with industry experts projecting it to reach a staggering $420 billion in value by 2029.
The remarkable growth trajectory, with a projected cumulative annual growth rate of 31 per cent, underscores the transformative potential of this dynamic sector.
At the heart of this fintech revolution is the Unified Payments Interface (UPI), which has already made significant inroads globally.
Ajay Kumar Choudhary, the non-executive chairman and independent director of the National Payments Corporation of India (NPCI), has highlighted the widespread adoption of UPI, with nearly 26,000 taxi drivers in Singapore and numerous merchants in the UAE now using this seamless payment platform.
The Indian fintech ecosystem has witnessed remarkable growth, with over 9,000 fintech entities currently operating in the country.
The robust startup landscape has captured the attention of investors, with the fintech sector commanding a substantial 14 per cent of the overall startup funding in India.
The adoption rate of fintech services in India is an impressive 87 per cent, far surpassing the global average of 67 per cent.
The government’s unwavering commitment to driving a digital economy, coupled with a young and tech-savvy population, has been a significant catalyst in propelling the fintech sector to new heights. Archana Vohra, the Managing Director of Google, said that the UPI is not merely a technological infrastructure, but rather an ongoing endeavor to ensure that digital payments are easily accessible to all.
Anand Vijay Jha, the Chairman of the Assocham Fintech Council, has underscored the importance of a collaborative approach, where policymakers, regulators, and various stakeholders in the ecosystem work together to deliver value and attract investors.
“The public-private partnership has been instrumental in building India’s strong position in digital public infrastructure.”
One of the key drivers propelling the fintech sector is the need for improved access to credit, especially for the underserved segments of society.
Vikas Verma, the COO of Mastercard, has highlighted how fintechs can play a pivotal role in enabling credit access, thereby contributing to the government’s “Viksit Bharat” (Prosperous India) vision.
As the Indian fintech industry continues its remarkable ascent, it is poised to transform the financial landscape, bringing about greater financial inclusion, enhanced accessibility, and a more robust digital economy.
The ambitious target set by the NPCI to achieve one billion UPI transactions per day in the coming years underscores the industry’s unwavering commitment to driving innovation and supporting the country’s economic growth.