In the next three years, India is anticipated to transition to a consumption-based non-cash economy, with person-to-merchant digital transactions exceeding $1.5 trillion by FY26.
A research released on Thursday, person-to-merchant digital transactions in India would surpass $1.5 trillion by FY26, making the country's consumer sector 50% non-cash.
UPI payments likely making up a sizeable portion at around $1 trillion in person-to-merchant (P2M) payments.
With its overall annualized transaction value rising to $1.7 trillion and its P2M transactions increasing to $380 billion (in FY23),
.........nearly twice the amount of credit cards, UPI has experienced exponential growth in recent years.
On the strength of quick merchant acceptance and adoption given zero/low merchant discount rate (MDR), rising internet penetration, and increased awareness of digital payment methods
The adoption is also anticipated to be accelerated by recent innovations including Credit on UPI, UPI 123 Pay, UPI Lite, and UPI coin vending machines
India's credit card spending will increase by about 2.5 times by FY26, from its present level of $100 to 110 billion.
However, it went on to say that overcoming obstacles like KYC verification, offline access, security, expense, and compliance will be crucial to adoption.