India tops the world in digital payments with 48% global share: RBI

By Gloria Methri

India accounts for nearly half of the world’s digital payments, holding a 48.5 per cent share in the global real-time payments volume, a report from the Reserve Bank of India (RBI) said on Monday. The report also highlighted that India leads the world in global remittances, having received $115.3 billion in 2023.

“India is leading the world with a share of 48.5 per cent in global real-time payments volume. Global remittances that are increasingly being affected through mobile money and digital platforms are estimated to have increased to $857.3 billion in 2023, led by India ($115.3 billion),” the report said.

Digital payments in India have recorded a compound annual growth rate (CAGR) of 50% and 10% in volume and value terms, respectively, in the last seven years, involving 164 billion transactions worth ₹2,428 lakh crore in 2023-24.

India’s digital revolution is not only limited to financial technology (FinTech), but it also encompasses the India Stack, which comprises biometric identification, the unified payments interface (UPI), mobile connectivity, digital lockers and consent-based data sharing.

The digital revolution is galvanising banking infrastructure and public finance management systems covering both direct benefit transfers and tax collections. E-markets are also becoming more vibrant and expanding their reach.

RBI said the UPI enabled the development of a real-time, round-the-clock, scalable and interoperable retail payment option. The payment platform has facilitated secure, convenient and low-cost transactions between individuals, businesses and governments on demand, with settlement in fiat money inside the formal financial system.

“The UPI has seen a tenfold increase in volume over the past four years, increasing from 12.5 billion transactions in 2019-20 to 131 billion transactions in 2023-24 – 80% of all digital payment volumes,” it said.

However, the report also identified cybersecurity as a serious challenge due to the diverse nature of cyber threats targeting the digital financial infrastructure. In India, security incidents handled by the Indian Computer Emergency Response Team (CERTIn) have increased from 53,117 in 2017 to 13,20,106 during the period January-October 2023. Unauthorized network scanning/probing/vulnerable services account for more than 80% of all security incidents in India.

The report further highlights that digital technology infrastructure will be India’s key growth engine tomorrow. The focus is on next-generation communication technologies like 6G and satellite networks, alongside expanding the 5G network to rural and uncovered urban areas. Advancing these technologies will create new opportunities in underserved areas.

The report also stated that achieving self-sufficiency in chip manufacturing is crucial for realizing the full potential of the digital revolution.

“As the semiconductor and chip manufacturing ecosystem matures in India, it will create strong backward and forward linkages in the digital world through a rise in cloud services and data storage, including data centres,” it said.