5 Key Emerging Trends in the Indian Digital Payments Industry

Article courtesy:
Abhishek Gupta – Senior Director, Product  & Payments at FreeCharge

At the recently held Financial Services Roundtable at Bengaluru on “Banking Transformation, Payment Convergence & Financial Crime Management”, Abhishek Gupta, Senior Director – Product and payments shared some very important points on how fintechs and banks are coming together toward achieving the larger goal of reaching 30 billion digital transactions in the year 2018 – 19.

Key insights shared by Abhishek were:

  1. BHIM UPI is becoming a mainstream payment method for online transactions as BHIM UPI fulfils all the key consumer needs around digital payments i.e. convenience, security and speed.
  2. In the month of October 2018, 482+ million UPI transactions happened across the country. Approximately 400 million transactions out of those happened in the peer to peer segment. Payments to vendors is still on the rising edge.
  3. There is a growing convergence between banks and fintechs to timely roll out innovative and consumer-centric products and services.
  4. Banks and fintechs are leveraging technology (AI and ML) to reach out and cater to customers 24×7 across various touchpoints like paperless account opening, virtual assistants, chatbots, real-time fraud detection, predictive analytics based offerings like EMI on debit cards, instant credit loans etc
  5. There is emergence of QR code as preferred payment acceptance method for offline merchant transactions primarily due to convenience and cost competitiveness vis-a-vis other payment acceptance alternatives.

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