India Digital Payments: 2020 Country Adoption Report

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India’s digital revolution in the past two decades has significantly contributed to the adoption of digital payments in the country. NASSCOM’s digital payments adoption study – India Digital Payments – 2020 Country Adoption Report – presents a first-of-its-kind in the world Digital Payments Adoption Maturity Index, with a comprehensive coverage, in-depth adoption assessment, and segment-wise maturity analysis.

Key Findings

Digital payments in India are accelerating faster than ever

Digital payments in India have leapt 160X in the past two decades.
India now ranks no.1 in the world in terms of real-time digital payments transactions.
COVID-19 pandemic further accelerated adoption of digital payments, which has grown 27% YoY, between 2020 and 2021

Overall adoption trends indicate an uptrend across all segments of users

Over 77% of Indians use digital payments regularly
45% of adopters were moderate to high users consistently using 6-8 digital payment modes
90%+ adoption seen in large enterprises and merchants with both B2B and B2C businesses

Micro-segments of high and low maturity highlight areas of focused intervention

High maturity users include Tier-1 residents, those in 45-60 age group with annual income >INR 10 lakh – these segments spent 5X more using digital modes
Interestingly, 45% of mature merchant users came from Tier 2 cities, while 95% of large companies and young enterprises (2-5 yrs old) were mature users
Low maturity segments include Tier 4 and beyond consumers, old users (>60 yrs), and SMEs in B2B or B2C-only businesses

The ecosystem indicates the need for innovative, affordable, and secure solutions

Enhanced connectivity, digital literacy, and reliable security solutions will transform the speed and maturity of adoption
Simpler KYC processes, secure and timely notifications, and reliable sources of learning can be gamechangers
Technology and policy convergence can prove turnkey for fintechs to innovate on low-cost mass-reach solutions

India Digital Payments: 2020 Country Adoption Report

Key Findings

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