Page 46 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

The initial push came from Demonetisation in 2016, when merchants began to accept
payments digitally, which in turn led to growth in products such as QR codes and wallets.

Several factors – including government initiatives and reforms, improving technology,
increasing reach and awareness – are likely to drive more than doubling of digital payments
from USD20tn in FY21 to USD40–50tn by FY26.

Total digital payments by value Total digital payments by volume (bn)
US$ tn
40-
150-
CAGR
~17%
CAGR
19.6 CAGR 20.2 ~30%
1%

14 CAGR 43
45%
FY2018 FY2021 FY2026P FY2018 FY2021 FY2026P
Notes:

NEFT and RTGS

A look at the key factors:

• Mobile payments, which include mobile wallets and UPI. As unique mobile payment
users increase from 252mn in FY21 to 650–700mn by FY26, mobile payments are
expected to increase 5x, crossing 100bn payments in volume.
Mobile payments are • Increasing digital payment adoption by merchants through POS machines, QR codes
a mode of payment and payment gateways
using mobile phones.
It typically includes • Digital payments: being accepted by non-traditional merchants, e.g. vendors, each
mobile wallets and UPI delivery person having a QR code, etc.

• Deepening penetration of digital banking products

Mobile payments

Mobile payments are a mode of payment using mobile phones. It typically includes mobile
wallets and UPI. There are various ways in which such payments can be done using mobile,
some of which are:

• Mobile wallets: These allow carrying cash in a digital format. Customers can link credit
card or debit card information to mobile wallet applications or transfer money online to
mobile wallets and use that for their purchases. Mobile wallets provide consumers with
greater convenience, better security and control over expenses.

44 Edelweiss Securities Limited