Topics In Demand
Notification
New

No notification found.

Exponential Rise of Contactless Payments in India
Exponential Rise of Contactless Payments in India

September 7, 2022

400

0

There is no denying the fact that digital payments adoption in India has catapulted in recent times especially post the 2016 bank note demonetisation and during the ongoing COVID-19 pandemic which has been another major catalyst. In fact, the total volumes of digital payments in India increased from rupees 1459.02 crore in FY 2017-18 to 4371.18 crore in FY 2020-21, as per data of Ministry of Finance, Government of India.[1] Gone are the days of reliance on ATMs to withdraw cash for shopping needs. Today, Indian shoppers have a slew of options available while making digital payments during in-store checkout.

Rising prevalence of digital payments usage is no surprise as India is a country where there exists one of the world’s largest young (and tech-savvy) populations and a rising base of internet users expected to surpass the 900 million milestone by 2025 from the 622 million in 2020, as per the Internet and Mobile Association of India (IAMAI).

Amid this incredible surge in digital payments usage, one of the fastest-growing modes has been contactless payments. Did you know that contactless payments clocked six times growth in the last 3 years as per a recent Whitepaper titled ‘India taps into a Contactless Future’ released by Visa and Worldline India?

Today, capital-light solutions such as mobile payment solutions that work seamlessly with NFC-enabled smartphones are further strengthening the digital payments ecosystem making ‘tap and pay’ payments easier for the merchant community. These merchants can start accepting contactless card payments using just their smartphone without the need to deploy any additional hardware supporting the transaction.

The convenience, speed, and security aspects of contactless payments such as quick ‘scan and pay’ QR codes or ‘tap and pay’ are contributing to this uptick in their adoption across the world. As per a new report by Juniper Research, the global contactless card transaction values will reach $2.5 trillion in 2021, from $1.7 trillion in 2020, registering a growth of 45% between 2020 and 2021.[2]

Digital India vision of the incumbent government and reformative steps by the banking regulator such as government’s Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) towards improving digital literacy and RBI’s setting up of the Payments Infrastructure and Development Fund or PIDF (now extended to street vendors) to spur the adoption of digital payments in tier 3-6 cities and northeastern states in India will further fuel the adoption of digital payments in India and popular modes such as contactless payments.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Pine Labs is one of the leading merchant commerce platforms in Asia

© Copyright nasscom. All Rights Reserved.