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Growth of Digital Payments in India in 2019

  • The Indian Prime Minister Narendra Modi has made digital payments one of the key initiatives as a part of his agenda, ever since the historic demonetization move
  • During his Independence Day speech on 15th August 2019 as well, he again re-iterated his devotion towards a digital economy, and it constituting a corner stone of India's growth story
  • Let us review how the digital payment innovations have done in India, and where do they stand in terms of numbers overall, as well as compared to other nations. Below are a few key numbers:
  • 87: number of payment apps hosted by UPI (Unified Payments Interface), created in 2016 to link India's banks and make digital payments convenient
  • 22.4: average number of digital transactions per person in FY 2018-19, up from 2.38 transactions per person in 2014; however the # is much higher in other countries - China (96.7), Indonesia (34), Singapore (782) in 2017
  • 513.8 Million: number of Indians that made digital payments in 2019, a 9.1% y-o-y growth; China: 835 Mn (4.6% y-o-y growth) & USA: 270.1 Mn (4.3% y-o-y growth)
  • $64.8 Billion: total value of transactions in India in 2019 (+26.8% y-o-y growth); China ($1.57 Trillion) & USA ($961 Billion)
  • $135.2 Billion: estimated value of digital transactions in India in 2023 (Assocham - PWC study) at 20.2% CAGR, world's fastest; China ($3.1 Trillion) & USA ($1.34 Trillion)
  • 72%: percentage of transactions in India that are still cash-based (according to report by Credit Suisse)
  • Rs. 21.6 Lakh Crore: value of notes in circulation as on July 19, 2019 (RBI statement), which is up from Rs. 19.1 lakh crore on July 20, 2018 and Rs. 17.74 lakh crore on November 4, 2016 pre-demonetization
  • 11.6%: ratio of currency in circulation as a % of GDP (estimated for March 2020), which is down only 0.3% from 11.9% pre-demonetization

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