Indian Fintech Sector to Reach $420 Billion by 2029: Digital Payments Body

New Delhi:

India’s fintech sector is expected to reach $420 billion by 2029, with a cumulative annual growth rate of 31% from around $110 billion this year, Ajay Kumar Choudhary, non-executive chairman and independent director of the National Payments Corporation of India (NPCI), said today.

Speaking to IANS on the sidelines of Assocham’s second ‘India International Fintech Festival’ in the national capital, Choudhary said that the Unified Payments Interface (UPI) has gone global and India Stack’s flagship offering is now available at the Eiffel Tower in Paris, at the Galeries Lafayette flagship store in Haussmann ahead of the Paris Olympics and in select countries in the Middle East.

“In Singapore, around 26,000 taxi drivers are using UPI. In the UAE, many merchants are now using UPI payment mode. Nepal has also started UPI. In India, UPI payments are breaking all records and we will see exponential growth in the coming years,” Choudhary told IANS.

“NPCI has also set an ambitious target of reaching 1 billion UPI transactions per day in the next few years,” he added.

Speaking at the inaugural session of the event, Choudhary said that with over 9,000 fintech entities, India ranks third globally and accounts for 14 percent of the country’s startup funding.

“The adoption rate of fintech in India is 87%, much higher than the global average of 67%,” he told those present.

According to Anand Vijay Jha, Chairman of Assocham Fintech Council, we need to focus much more on value creation to attract investors into the ecosystem.

“India’s strong position in public digital infrastructure is rooted in public-private partnerships. With more stakeholders in the ecosystem, the role of policy makers and regulators becomes more important,” Jha said.

The government’s push for a digital economy, coupled with a young, tech-savvy population, is likely to propel the fintech sector to new heights.

According to Google CEO Archana Vohra, UPI is not just a set of technology tracks, but a never-ending effort to ensure that digital payments are easily accessible.

“What got us here is not going to get us forward, so we need to be persistent and resilient and make sure that the next 10 to 15 years help us move further into fintech,” Vohra said.

Vikas Verma, COO of Mastercard, said that access to credit is one of the key catalysts that is driving India towards its ‘Viksit Bharat’ vision and that fintechs can enable access to credit for the most disadvantaged sections of our society.

(Except for the headline, this story has not been edited by NDTV staff and is published via a shared feed.)

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