India's Digital Payments Set To Soar USD 7 Trillion by 2030 By CIOTechOutlook Team

India's Digital Payments Set To Soar USD 7 Trillion by 2030

CIOTechOutlook Team | Monday, 15 July 2024, 02:30 IST

India's retail digital payments are predicted to triple from current levels to USD 7 trillion by 2030 due to the country's rapid digital adoption, as per the report by Kearney and Amazon Pay.

As per the 'How Urban India Pays' research, Kearney-Amazon Pay has stated that the widespread acceptance of digital payments in online transactions may result in a lasting change in consumer habits, hence promoting offline usage as well.

Rich customers lead the way with the highest Degree of Digital Payment Usage (DDPU), tending to use various modes of digital payment for 80% of their transactions, despite the fact that 90% of survey respondents favored digital payments when making online purchases.

"Millennials and Gen X are leading in the adoption of all types of digital payment instruments," it said. "Men and women both use digital payments in about 72 per cent of their transactions, indicating gender parity."

The study's foundation was an online survey that was completed by over 6,000 customers and over 1,000 retailers using offline and online means in 120 locations. The participants represented a range of geographic areas, socioeconomic classes, city classifications, age ranges, and genders.

The e-commerce industry in India has experienced a boom, with a projected valuation of between USD 75 billion and USD 80 billion in 2022 and a compound annual growth rate (CAGR) of 21% until 2030.

"In line with India's digital journey, retail digital payments have grown dramatically over the past five years - from USD 300 billion in FY18 to USD 3.6 trillion in FY24. By FY30, they are likely to double to USD 7 trillion," the report said.