What a phenomenal time it is to be an Indian! From a macro-economic perspective, we are among the few large economies that have proven to be resilient. We continue rapid strides towards creating a more inclusive and sustainable democracy while pushing the envelope of technological progress and innovation. Naturally, the outcomes of being one of the top 3 global economies and India’s evolving role in global politics are a given.
This means, India’s consumption is likely to nearly double from $1.8T in FY22 to $3.3T in FY26. This will entail 350-400MM+ digital consumers spending 50%+ using digital payment methods. This “new internet consumption economy” will be built on growing affluence , pushing the spend on services to three to four times the levels today.
While the promises and economic opportunities are certain, there are four fundamental pillars necessary to successfully push the envelope of commerce even further in the country:
- Seamless payments
The availability of a wide range of payment methods, better success rates, reduced fraud, and exceptional service are all parameters that will govern the continued juggernaut that is digital payments in India. As the global case study for growth in new digital payment solutions, India will be at the forefront of exporting these frameworks and capabilities to a global audience.
- Access to credit
Affordable formal credit will be a key lever in enabling the aspirations of millions of Indian consumers and merchants. With an explosion in data and alternate assessment methods, consumer credit penetration through traditional products like cards will soon be upgraded with affordability options and use-case based underwriting. Some of these use cases will be rolled out on new platforms like credit on UPI, further unleashing the potential of existing scale. Merchant credit demand is also going to be serviced through better systemic integration of data, cutting across payables, receivables, and their history with bill and tax payments.
- Technology that unifies
Enabling technology that bridges consumer, merchant, and bank interactions at scale, helping unlock authentication, back-end clearing, and settlement while retaining a high availability and lower stress on existent systems will be key as the future of commerce unfolds. The successful build of this backbone, with the policy drive towards “digital India infrastructure” through programs like UPI, ONDC, OCEN, AAF, and Digital Data Protection will all yield in newer business processes and models, ushering in the growth of commerce streams.
- Safe and trusted ecosystems
RBI, is a global case study in enabling consumer protection at the core while giving systems the flexibility to expand elastically. The successful role of the regulator’s vision and commitment to building the safety and trust of digital payments in India is largely responsible for our global payment’s leadership directly. Their collaborative approach, adherence to transparency, and experience in dealing with a rapidly evolving ecosystem are second to none, and we look forward to a continued emphasis on the core of what commerce should be – 100% trust.
PayU stands at the forefront of driving the commerce revolution in India
I am proud to say that, at PayU, we have built an established track record of pioneering several initiatives not just under these four pillars but also in the intersection of these disciplines. We will continue to invest and double down on further driving the efficiency, scale, and adoption of digital commerce in the country.
In conclusion, while the other ASEAN Tigers (SG, HK, TW, KOREA) roared in the not so distant past, it is time for India, with its sustainable, inclusive, and resilient businesses and process to continue to roar not just into the 22nd century but well into the 3rd millennium. And we will do so at scale, on the strength of our consumption and the combined might of the Indian entrepreneurial spirit!