- India is at the top of the world in real-time payment transactions in 2021, with 48.6 Bn transactions.
- The number of real-time transactions in India was almost 2.6X higher than that of China.
- Reports estimate that India is likely to become the third fastest-growing real-time market in the world by 2026
According to a report, India is at the top of the world in real-time payment transactions in 2021, with 48.6 Bn such transactions, representing more than 40% of the global transactions, emerging from the country.
The number of real-time transactions in India was almost 2.6X higher than that of China and almost seven times higher than the combined real-time payments volume of countries like the US, Canada, the UK, France and Germany.
The report by ‘Prime Time for Real-Time 2022’, tracked real-time payment volumes across 30 countries. This report was released by real-time payments provider ACI Worldwide in collaboration with analytics firm GlobalData and the UK-based Centre for Economics and Business Research.
Reports show that real-time payments contributed an additional $16.4 billion of economic output to India last year, which is equivalent to 0.56% of formal GDP. The number of payments done in India using real-time instruments was as high as 31.3% last year.
Reports estimate that India is likely to become the third fastest-growing real-time market in the world by 2026 with a compound annual growth rate of 33.5%. The country’s GDP could rise to $1.12% from $45.9 Bn in digital payments by 2026, according to the report.
Uninitiated individuals may not realize that real-time payments are actually digital payments that allow funds to be easily transferred within seconds. Offerings like UPI and QR-based payments for merchants are included in this category.
Jeremy Wilmot, chief product officer for ACI Worldwide, commented on the findings of the report, saying, “To see how this future looks, let’s look at India, where UPI processes over 5.3 billion transactions per month, and UPI is launching its third-generation just six years after its first.”
Reports indicate that pandemic-driven growth is largely responsible for the adoption of online payments in India.
Additionally, the growing penetration of the internet and smartphones has led to a significant increase in digital transactions in the country. It is also reflected in the UPI transaction data for March 2022, which showed that more than 540 Cr transactions were transacted via UPI worth INR 9.60 Lakh Cr.
There are currently two dominant players in the UPI payments market in India – PhonePe and Google Pay. In terms of transaction value, these two companies account for over 84 per cent of the UPI market. In addition to Paytm, Amazon Pay, and WhatsApp Pay, there are many other big names in the fintech sector.