Kolkata, June 16: Turbo-charging expansion in the financial technology (FinTech), India's digital payments transaction value is projected to more than double to USD 135.2 billion in 2023 from USD 64.8 billion this year, according to an ASSOCHAM-PWC India study.
“India is expected to clock the fastest growth in digital payments transaction value between 2019 and 2023 with a compounded annual growth of 20.2 per cent ', the study said.
Though on a smaller base, India’s CAGR of over 20 per cent is ahead of China with 18.5 per cent and the US 8.6 per cent.
It said India's share of the worldwide transaction value of digital payments is also set to increase from 1.56 per cent to 2.02 per cent in the next four years.
As of today, the customer and the merchant must have a common PPI operator to make the transaction happen. However, with interoperability, such a hindrance can be removed, enabling users to make payments at any and all digitally- enabled merchant outlets without the need to possess the same wallet platform.
'What makes interoperability possible is the UPI (Unified Payment Interface) which allows users possessing accounts in different banks to transact with each other in real time. With wallet interoperability, this platform can be leveraged to facilitate easier mobile wallet transactions, thus paving the way for a more connected peer-to-peer merchant network', they study said.
Though India is growing at the fastest pace, it is China which is the market leader in terms of the overall value of transactions of USD 1.56 trillion.