Digital Payments and upi in India.pdfbfile

Digital payment in india

1. Digital Payments in India

Fueling Economic Growth and Transformation

2. A New Economic Era

1) The Digital Tsunami
India has undergone a profound financial transformation. Digital
© © payments have shifted from a convenience to the primary engine of

transactions, reshaping commerce, governance, and daily life.
of all transactions by volume (H1 2025)

3. What's Fueling the Growth?

0

Smartphone
Penetration

Rapid adoption of affordable
smartphones has put digital tools in
the hands of millions across the
country.

Affordable Data

Access to some of the world's
cheapest mobile data plans has made
being online ubiquitous and accessible
for all.

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Govt. Initiatives

Astrong, consistent push from the
‘Digital India' mission, RBI, and
initiatives like UPI created the perfect
ecosystem.

4. The Digital Payment Ecosystem

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UPI (Unified Payments Interface): The clear leader for high-frequency, low-value P2P and P2M
payments.

Cards (Credit/Debit): Credit cards are increasingly used for higher-value transactions, while debit
cards are now primarily for ATM withdrawals.

Wallets & PPIs: Mobile wallets (like Paytm) and other Prepaid Payment Instruments remain popular
for specific use cases.

Bank Transfers: Includes NEFT, RTGS, and IMPS, which are the workhorses for larger value and
corporate transfers,

5. The UPI Revolution (Transaction Volume)

FY 2018

FY 2020 20%

FY 2022 55%

FY 2024

UPI transactions grew at a staggering 129% CAGR between FY 2018 (92 Cr) and FY 2024 (13,116 Cr), becoming the backbone of India's
retail payments.

6. Market Share by Volume (H1 2025)

B 065%
B® cards (8%)
@ wallets (5%)

Others (2%)

UPI clearly dominates the transaction "volume? handling the vast majority of all digital payments in India.

7. Economic Impact: Formalization

— L_

Managestoan isomers queres or
Requests and transaction or transfer

‘Employees in the
Employ from the Bank Account

Bringing Transactions to Light

Digital payments are a key driver in formalizing the Indian economy. By
creating a digital trail, they bring more transactions into the official nl

system, which enhances transparency, improves tax collection, and als for Customer
provides a clearer, data-rich view of economic activity. [mi

‘ConirolsiOwns 8

List of all Employ

List of all Customers in a Branch

‘Customer_Record

LEVEL -0

8. Economic Impact: Financial Inclusion

Empowering the Unbanked

Digital tools provide ‘anytime, anywhere’ access to financial services.

This empowers unbanked and underbanked populations, allowing them
to:

+ Receive subsidies directly, reducing ‘leakage:
+ Build verifiable financial footprint.

+ Access formal credit, often for the first

9. Image Sources

https:/media geeksforgeeks.org/wp-contentluploads/20210225101252/Level0DFDOnlineBinakingSystem.PNG

Source: www.geeksforgeeks.org