Recently United Kingdom based payments system company ACI Worldwide Inc. released a report on digital payments. According to the report, India has the highest number of real-time online transactions in the year 2020.


  • In India, Digital payment market is led by Google pay, Paytm, PhonePe, BharatPe, Pine Labs, etc.
  • The UPI transaction increased by 18.7 per cent in March 2021 as compared to February 2021. In February 2021, the UPI transaction was Rupees 4.25 lakh crores and in March 2021, it was Rupees 5.05 lakh crores.
  • India was ahead of China, the United States of America, South Korea, United Kingdom, Thailand in number of online transactions.
  • As per the report, the share of electronic transactions in India will exceed 50 per cent by 2024.

How did COVID-19 accelerate India’s digitisation?

  • According to central bank of India RBI, India is now clocking around 100 million digital transactions in a day. This is 5-times as compared to that in 2016. Much of these transactions are powered by UPI (Unified Payments Interface).
  • The acceleration of India’s digitisation during COVID was mostly through JAM (Jan Dhan Aadhaar Mobile). JAM trinity was proposed by Economic Survey 2014-15. It is an initiative to link Jan Dhan accounts, Aadhar cards and mobile numbers. JAM played the role of safety net during lockdown.
  • During COVID, several e-retailers requested payments via digital mechanisms which is contactless and also reduces the risk of spread of the virus. This was another major reason for the increase of digital transactions during COVID-19.
  • India also moved towards UPI from card segment for money transactions during COVID-19 times. Unified Payments Interface touched new highs every month during COVID-19.
  • Looking at the promising digital growth in India, Google announced an additional investment of $10 billion in India to provide internet access to the country.

Challenges in Digital Transformation in India

  • Most of the central digital services function in Hindi or English. With India being highly diverse in culture, more services should be launched in local languages. Launching digital services in multiple languages is one of the main objectives of Google’s $10 billion investment plan.
  • Unreliable performance and poor technical support, poor web or mobile application designs are creating loss of faith and confidence in government digital channels.

India leads in Digital Payments India leads in Digital Payments