India's UPI Expected To Cross 1 Bn Transactions Per day by FY 2026-27: Report
With the addition of new features and use cases, India's unified payment interface (UPI) is expected to cross 1 billion transactions per day by FY 2026–27, said PwC in a report.
The Indian payments handbook 2022–2027 revealed that UPI 123PAY and UPI Lite are expected to increase the adoption of digital payments in rural areas.
The report added, "UPI for foreign tourists, UPI linkage to credit accounts and tie-ups with real-time payments systems of other countries will further increase foreign inward remittance."
The report further stated that India is becoming a credit-friendly market with the introduction of products like credit card linkage to UPI, innovations in credit card products and banks focusing on bringing in new credit card offerings.
Credit cards show promising growth in future, with the transaction volumes expected to grow by three times by FY 2026–-27 due to new players coming up in this space.
Opening up the Indian market to credit has been well balanced by the conservative approach to mitigate elements of credit risk (by closely monitoring market behaviour), offering new products – covering new credit and credit card segments – and also creating awareness about the pros and cons of these products, it added.
According to the report, India has moved ahead of the stage where incentives, cashback and rewards acted as a catalyst to encourage users to transact digitally.
"We have observed that Indian customers are now habituated and more comfortable with digital transactions. This trend is expected to continue and grow in the future," it mentioned.
It said that this has been made possible due to the dedicated focus of the government and regulator and the efforts of all operators and stakeholders in the payments ecosystem, who have enabled a safe, convenient and easy-to-use experience for customers.
