India’s tech prowess was on display when it built and delivered its digital payments system Unified Payments Interface or UPI. Since its inception in 2016, UPI has achieved various milestones and has become the most preferred mode of payments among Indians.
UPI Growth Story :
UPI has just completed its fourth fiscal year. While the first fiscal year (FY17) was the testing period, it came into limelight and picked up pace post demonetization era. Growing on the back of the government-promoted BHIM and third-party apps like PhonePe and Paytm, UPI cornered sizeable pie of overall P2P, recharge and bill payments market in FY18. In the latter half of FY18, Google Pay became the first overseas player to join the UPI ecosystem. Nearly one-third of the total amount transacted on this four-year-old platform came in the last six months (the period following the lockdown).
Contactless banking is the perfect remedy for Covid-type of situations as well as further enhancing the efficiency of banking. Nearly one-third of the total amount transacted on this four-year-old platform came in the last six months (the period following the lockdown) which is a urge among people to go in for contactless payment options is one of the important factors for its growth in the post-Covid scenario.
The people adoptability towards contactless payment is visible from its yearly trend reported growth of 30,684% from FY16 to FY20.
Growth prediction of UPI for FY21 :
According to RBI, it sees payment systems like IMPS and UPI registering average annualised growth of over 100% and NEFT at 40% till 2021. Even with ongoing growth rate, UPI can maintain its leadership over IMPS, credit and debit cards.
Moreover, the entry of WhatsApp is likely to change the dynamics of the UPI ecosystem. Experts believe that WhatsApp would take no time to reach what others have achieved in three or two years. Such a belief may turn true if we factor in its reach to 400 million users in India.
What is your view on the Whatsapp, will they be able to break market share of (Amazon Pay, Gpay, Phone Pe, Paytm ) ? If yes, who platform would be the biggest looser?
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Source : Fintech Meetup