Real-time payments system Unified Payments Interface (UPI) is expected grow massively in the next five years, capturing over 50% of the payments space, Boston Consulting Group forecasts.
According to the research company, between 2021-22 and 2024-25, UPI will dominate the payments space with 59% payments transactions, followed by mobile and internet-based payments, which will constitute a fifth of the total number of cash and non-cash transactions.
Other key findings:
the payments space during 2018-19 portrays a different picture, with ATM transactions being the highest (a third of the total cash and non-cash transactions), followed by UPI-based digital payments (17% share), point of sale machines (20%), and mobile and internet (13%), and cash comprising 5% of the total transactions;
ATM transactions are expected to comprise 5% of total transactions between 2021-22 and 2024-25;
the real-time payments system UPI registered 822.29 million transactions in July 2019;
of the total number of UPI-based transactions in 2018-19, GooglePay scored the maximum transactions at 36%, followed by Flipkart-backed PhonePe at 29%, Paytm at 25%, and other banks and payments instruments at 10%.