The Unified Payments Interface of the country has the potential to touch 100 billion transactions in the next 10-15 years, backed by credit growth, said Dilip Asbe, Managing Director and CEO, National Payments Corporation of India.
We are looking at 100 billion transactions in the next 10-15 years which is a fairly achievable number. And, credit is going to be the backbone of this growth," Asbe said at the Global Fintech Fest here. He pointed out that credit has already been launched on UPI and the commercials would be released within a couple of weeks.
I think the small ticket and high-frequency credit is going to be important to reach that goal." Besides, he added that growing fintech transactions would emerge as a strong driver for increased UPI usage. "We are fairly convinced that recurring payments mandate QRs and EMI QRs will drive that usage," he said. Official data pegged about 13.89 billion transactions on UPI in June up against 14.04 billion last month.
UPI is expected to see the number of transactions surge more than three-fold from about 131 billion in 2023-24 to 439 billion by 2028-29 and account for 91 per cent of all retail digital transactions, consultancy firm PwC India has estimated in a report. According to the report, 'The Indian Payments Handbook – 2024-29', the digital payments landscape of India has seen phenomenal growth in the last eight years, and the industry is likely to see over three times growth in volume-from 159 billion transactions in 2023-24 to 481 billion by 2028-29.
The market growth in value terms of the payment transactions, is thus likely to more than double from Rs 265 lakh crore to Rs 593 lakh crore during this period. Growth in transaction volume on UPI has been estimated at 57 per cent year-on-year by the PwC India report.
Credit cards have also witnessed a strong growth in 2023-24, with the industry adding over 16 million new cards, said the report. This propelled the transactional volume and value to surge by 22 per cent and 28 per cent, respectively. According to the report, credit cards are likely to reach 200 million by 2028-29.
