Digital payments industry to hit $500 bn by 2020, says GSMA-BCG report

By

Maverick Martins

Published
Feb 23, 2017

Digital payments industry in India is expected to reach USD 500 billion by 2020, with over 50 per cent of Internet users in the country will be using it by then, a report by global telecom body GSM Association and Boston Consulting Group (BCG) said.

The report was prepared over BCG research in six countries -- Brazil, China, Germany, India, South Korea and the US.

In India, BCG estimates that digital technologies will influence up to 45 per cent of all retail sales by 2025, said the report.

As Internet adoption and use rise in India, the government and others are increasingly turning to digital solutions to long-standing problems, it said.

The opportunity for expansion of service delivery is huge as the number of connected Internet users in India is expected to more than double in the next few years to as many as 550 million, the report added.

It also noted scope of the Unique Identification Authority of India (UIDAI) system which enables anyone in the country to obtain an electronic and digitally-signed proof of identity.

"Almost the entire adult population have Aadhaar cards that facilitate electronic payments, and the electronic payment industry today encompasses telcos, banks, wallet companies and e-commerce firms," the report said.