Unified Payments Interface (UPI) merchant payments may reach $1 trillion by FY26, according to Bain and Company which was quoted as saying in the Future of India Retail Payments report published on Thursday, media reports have said.
Driven by a growth rate of 40 per cent-50 per cent, the rise in UPI merchant payments will also be driven by increased awareness, growth in merchant acceptance of UPI, new payment features introduced such as UPI Lite and UPI 123 Pay along with the opening up of international payment corridors on the domestic payment railroad, says a report by ET Tech.
To recall, Paytm Payments Bank Limited (PPBL), a part of mobile payment company Paytm, last month introduced UPI LITE feature for its users for faster UPI payments for multiple small-value UPI transactions. The company said that for payments of up to Rs 200, UPI Lite eliminates the need for UPI PIN. UPI LITE is exclusively available on the Paytm app.
"India is leading the way in creating a non-cash economy and is outpacing many other emerging economies with the help of UPI, a game-changer by NPCI,” Rakesh Pozhath, Partner and Leading Member of Financial Services Practice, Bain & Company, was quoted as saying by the ET Tech report.
To recall, the unified payment interface transactions in the country saw a sharp rise of 650 per cent in semi-urban and rural stores in 2022. According to a previous report by branchless banking and digital network PayNearby, there was growth of 25 per cent and 14 per cent in value and volume, respectively, in assisted financial transactions across semi-urban and rural retail counters in the country in 2022.
The report said that this increase in transactions shows a shift in consumers in these regions, with more citizens adopting assisted digital means for their banking and lifestyle requirements and getting incorporated into the formal economy.