India’s massive economy has historically been dominated by cash, but the tides are beginning to change as the government leads the way in pushing the world’s second-largest population away from physical currency. A late 2016 demonetization initiative, in which the government removed 86% of the country’s currency from circulation, was the major impetus behind a rapid uptick in digital payments, which are expected to grow at least fivefold to $1 trillion by 2023. But cash still reigns supreme in the market — physical currency comprises 70% of the country’s total transactions by value — and digital wallets have a long runway for growth, with just 14% of Indian consumers making mobile payments on a weekly basis. However, the growing digital payments opportunity, increase in internet access, and a series of government-backed initiatives that expand access to financial services are helping homegrown players expand rapidly and bringing major multinational firms to the region, putting the market still at the beginning of a stretch of ongoing rapid growth and innovation in digital payments.
Noteworthy Indian Payments Providers
When selecting notable providers, Business Insider Intelligence looked into key segments of the Indian payments market, including banking, mobile payments, and processing, to find firms making strategic or meaningful innovations emblematic of changes in space at large. Like many emerging markets, the Indian payments market is particularly crowded, with companies of all ages and sizes trying to capitalize on the opportunity.
Paytm. Paytm, founded in 2010, counts 350 million active users — or 27% of the Indian population — making it the largest Indian mobile wallet by users. The firm also holds a 37% share of transactions on the country’s Unified Payments Interface (UPI), which enables users [...]