{"id":1305,"date":"2019-04-17T16:16:28","date_gmt":"2019-04-17T10:46:28","guid":{"rendered":"https:\/\/rzpwp.blog\/?p=1305"},"modified":"2025-03-27T13:02:50","modified_gmt":"2025-03-27T07:32:50","slug":"era-of-rising-fintech-digital-payments-upi-report","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/era-of-rising-fintech-digital-payments-upi-report\/","title":{"rendered":"The Era of Rising Fintech – How India Makes & Accepts Payments"},"content":{"rendered":"

Have you recently stopped and taken a moment to appreciate how you’re able to pay for the chai you drink by simply scanning a QR code? Have you thought about how simple it is to make a payment at your local grocery store using Google Pay? No? Maybe you should.<\/span><\/p>\n

For a long time, Indian citizens have remained skeptical about evolving along with the pace that technology has set. Was it the fear of exploring what’s new? The fear of getting out of the comfort zone? <\/span><\/p>\n

Maybe. But in recent years, the country has embraced change, and it has brought so much advancement in terms of how payments are simplified. Gone are those days where you always have to carry cash in your wallet. Gone are those days where you need to quarrel with vendors for not rendering change to you. <\/span><\/p>\n

India has embarked upon a new era – The Era of Rising Fintech.<\/span><\/p>\n

India has seen a tremendous rise in fintech adoption in the last few years with a growing demand for non-cash transactions.<\/span> Keeping in mind the demand, <\/span>NASSCOM<\/span> predicts the Indian fintech software market alone to double itself and reach USD 2.4 billion by 2020.<\/span><\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Related read: Types of UPI frauds and how to stay safe<\/a><\/span><\/p>\n

Necessity is the mother of invention<\/b><\/h2>\n

India being a developing country, encourages innovation. The country sees growing customer demand for digital payments<\/a>, but regulatory and operational complexities persist. Digital transactions are expected to surpass cash transactions by 2023. This demand has created the need for a new ecosystem for digital payments, banks, and fintech firms to join forces and innovate.<\/span><\/p>\n

UPI – India’s mega gamechanger<\/b><\/h2>\n

We all use Google Pay, PhonePe, BHIM, and other apps every day. But do we really know what an impact these apps have made on the Indian payments landscape? <\/span><\/p>\n

In all these years, if we were to choose one fintech innovation that has completely revolutionized how payments work, it has to be UPI – an instant, real-time payment system developed by the National Payments Corporation of India (NPCI)<\/a>, that facilitates inter-bank transactions. <\/span><\/p>\n

Everybody warmly welcomed UPI because it gave a glimpse of how easy and instantaneous payments can be. It saw a 7x growth in 2018<\/a>, while Google Pay became the king of UPI apps and reigned, dethroning all other UPI apps. \u00a0At Razorpay, 62% of all UPI payments in 2018 were made on Google Pay, while BHIM app took home a meager 4%. PhonePe retained its second rank while PayTM jumped up to the third position.<\/span><\/p>\n

From being a wallet killer, UPI has also made its way to steal the market share from net banking. It has transformed into a merchant first payment (P2M) platform, from being a P2P payment mode in 2017.<\/span><\/p>\n

Related Read: What is E-rupee And How to Start Using E-rupee?<\/a><\/p>\n

How India transacts digitally<\/b><\/h2>\n

Now, India has embraced the digital epoch to an exponential level. The first six months of FY2018-19 saw <\/span>11.8 billion<\/span> digital transactions, only coursing through to burst forth. <\/span><\/p>\n

Let\u2019s understand how consumers and businesses in India transact.<\/span><\/p>\n

Consumers (P2P)<\/b><\/p>\n