“The last few years in Indian Fintech witnessed a digital revolution prompting transformational changes in the way businesses function today. This year saw continuous efforts by the Government of India to drive our economy towards a less-cash and more digital economy; the impact of revolutionary policies/guidelines introduced in late 2018 visibly catapulted the growth of digital transactions. Introduction of interoperability and increasing role of UPI QR code-based mobile wallet payments has contributed to simpler payments and cost-efficiency for merchants and provided consumers more power to choose from the available methods. As reports suggest, in the first four years UPI transactions witnessed an increase from 100,000 monthly transactions to 1.15 billion monthly transactions with the annual run rate of transactions flowing through UPI being about 10 per cent of India's GDP.
Overall, 2019 was the year of an expected collaboration between Banking & Fintech. India continues to be one of the top markets globally for mobile wallet adoption. Offers such as the cashback and discounts provided by mobile wallets gained increased attention of cost-conscious customers. RBI’s proposal to introduce new prepaid instrument for purchase of goods & services up to Rs 10,000 will provide further impetus to digital banking as the loading /reloading of such PPI will be only from a bank account and used for making only digital payments. Further, the introduction of first-ever UPI QR based feature on ATMs to withdraw/deposit cash re-affirms that Cash & digital modes of payments will continue to coexist and would act as a bridge for customers graduating from cash to digital payments.
The digital industry also observed advent of multiple innovative but niche apps that have contributed to customer convenience. For instance, being able to educate one’s child or leveraging RFID to refuel a vehicle with just a click; this new generation of apps open the possibility of a very different kind of collaborations between Tech & FinTech players in the near future.
The next few years will see an increased dependency on smart technologies with improved adoption of mobile payments becoming the norm. Customers will continue to benefit from UPI QR, interoperability will drive digital payments in 2020 and pave the way for financial inclusion in the country.”