
The Indian fintech industry is on a significant growth trajectory, with projections indicating it will reach $420 billion by 2029. This growth represents a remarkable cumulative annual growth rate of 31 percent from approximately $110 billion this year. Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director of the National Payments Corporation of India (NPCI), shared these insights today.
Global Expansion of Unified Payments Interface (UPI)
During an interview with IANS at Assocham’s second ‘India International Fintech Festival’ in the national capital, Choudhary highlighted the global expansion of the Unified Payments Interface (UPI). He noted that UPI is now available at notable international locations such as the Eiffel Tower in Paris, Galeries Lafayette’s flagship store in Haussmann ahead of the Paris Olympics, and various countries in the Middle East.
Choudhary emphasized the growing adoption of UPI globally, citing that in Singapore, nearly 26,000 cab drivers are utilizing the payment method. In the UAE, many merchants have adopted UPI, and Nepal has recently started using it. He anticipates continued exponential growth in UPI payments in India.
Ambitious Targets and Industry Position
NPCI has set an ambitious target of achieving 1 billion UPI transactions per day in the coming years. Speaking at the event, Choudhary also noted that India ranks third globally with over 9,000 fintech entities and commands 14 percent of startup funding in the country. The adoption rate of fintech in India stands at 87 percent, significantly higher than the global average of 67 percent.
Focus on Value Delivery and Public-Private Partnerships
Anand Vijay Jha, Chairman of the Assocham Fintech Council, emphasized the need for focused efforts to deliver value and attract investors to the fintech ecosystem. He highlighted that India’s strong position in digital public infrastructure is a result of effective public-private partnerships. Jha also stressed the increased importance of policymakers and regulators due to the involvement of multiple stakeholders in the ecosystem.
Government Initiatives and Future Outlook
The government’s push towards a digital economy, combined with a young and tech-savvy population, is expected to drive the fintech sector to new heights. Archana Vohra, Managing Director at Google, noted that UPI represents more than just technological infrastructure; it requires continuous work to ensure accessibility for digital payments. She emphasized the need for persistence and resilience to advance the fintech space in the next 10 to 15 years.
Role of Fintech in Credit Access
Vikas Verma, COO of Mastercard, highlighted that access to credit is a crucial factor driving India towards its ‘Viksit Bharat’ vision. He pointed out that fintechs play a significant role in enabling access to credit for underserved segments of society, contributing to the broader vision of inclusive growth.