Digital Payment Market Size in India | Growth Forecast 2025

Q: What is the projected CAGR for India digital payment market?

The India digital payment market is projected to grow at a CAGR of 17.6% during the forecast period.

Q: What part does UPI play in the digital payment system in India?

Due to its high interoperability and low fees, UPI is essential to the growth of digital payments in India.

Q: Which major risks are related to the expansion of digital payments?

Cyber fraud, phishing scams, digital illiteracy in certain groups, and the requirement for constant internet connectivity are major hazards.

Q: Which industries are most affected using digital payments?

Digital payments streamline transactions and increase transparency, which has a significant impact on MSMEs, retail, transportation, education, and healthcare.

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Code: MTA4916

Publication Date: Jul 2025

What is the India digital payment market size and growth rate?

According to 6Wresearch internal database and industry insights, the India digital payment market was is projected to grow at a CAGR of 17.6% during the coming years.

This significant growth is driven by increasing mobile internet penetration, government-led financial inclusion initiatives, and rising adoption of UPI-based payments.

Additionally, the increase in smartphone usage and expansion of digital banking services are further accelerating the shift towards cashless transactions across urban and rural India. Rising financial literacy and supportive government initiatives like Digital India are also playing an important role in boosting digital payment adoption.

Key Growth Factors of the India Digital Payment Market

Strong government push through initiatives like Digital India and Jan Dhan Yojana
Widespread adoption of UPI, QR codes, and mobile wallets
Growth of e-commerce, food delivery, and ride-hailing platforms
Rapid expansion of fintech startups providing user-friendly payment solutions
Enhanced cybersecurity frameworks and two-factor authentication norms
Supportive regulatory measures from RBI and NPCI to ensure interoperability

India Digital Payment Market Trends

The India digital payment market trend is shifting towards real-time, interoperable systems like UPI Lite and UPI Credit. Tokenization and contactless card payments are being increasingly adopted, especially in metro cities. Voice-based and vernacular language payment interfaces are growing in rural belts, expanding digital inclusivity. Merchant payments via QR codes and soundbox devices are becoming the standard across small and medium businesses.

Emerging Developments in the India digital payment market

Innovations in the ecosystem include AI-based fraud detection systems, Central Bank Digital Currency (CBDC) pilot programs, and payment integration in super apps. Fintechs and banks are working together to develop embedded payment systems for industries like retail, agriculture, and education. Offline payment solutions and near-field communication (NFC)-enabled smartcards are being tested for low-connectivity zones.