India’s digital payment system has transformed drastically over the past few years. Today, 40 per cent of payments are digital.
The share of digital transactions has been consistently rising in merchant transactions, especially in the retail, entertainment, travel and healthcare segments. Merchant payments are expected to be the drivers of digital payments and by 2026 it is expected that digital merchant payments may account for 65 per cent of total payments, BCG-PhonePe Pulse report says. Despite this tremendous growth, stakeholders must address operational problems such as technical decline of transactions which went above 1.4% average in early 2022