India ranks Top position in Digital Transactions, 2020
In today’s blog, we are covering a recent report by ACI worldwide and GlobalData. The report consists of the Digital Transaction data of the Globe for the year 2020. Where the report says that “India ranks top position in Digital Transaction”
As per the report, India retained a top place in terms of digital payments for the year 2020. Here India made a total 25.5 billion of transactions in the year, the report showed by ACI Worldwide and GlobalData.
In 2020, the transaction volume of instant payments in India stands at 15.6% and 22.9% for other electronic payments. Paper-based payments had a considerable volume share of 61.4%, as the report showed.
“This position will aim to change by the year 2025 where the share of volume for instant payments will expect to rise by 37.1%. And other electronic payments will expect to rise by 34.6%. But the volume of paper-based transactions will hold its volume at 28.3%,” as the report said.
As per the list of countries, India retained top place. India made a total of 25.5 billion transactions in the year 2020. Where China followed India and successfully held second place with over 15.7 billion transactions. Then South Korea took third place in the list, followed by Thailand and the UK on the fourth and fifth spot in the list.
As the Covid pandemic continues to drive the globe. We can see changes in consumer and business behaviours, from the banks, from merchants and from the intermediaries across the payment ecosystem. The factors are responding rapidly by prioritizing the shift to digital transactions. The shift is to protect present income streams, and for searching new ones for a fully digitized customer experience.
The pandemic has changed the mindsets with millions of people globally having to change the way they work and live. And the way people shop and pay mobile wallet acceptance rate rose to high with 46% in the year 2020. Last year the rate was 40.6% and 18.9% in the year 2018. Countries like Brazil, Mexico and Malaysia were the countries that relied on cashback then. They are now becoming the countries with some of the fastest adaptation of mobile wallets.
As per the report, there are more than 70.3 billion payments transactions were processed globally in the year 2020. Compared to the previous year this is a huge rise of 41%.
As the Covid-19 pandemic and national lockdowns dramatically accelerated the trends. Peoples are trying to make distance from cash and cheque to the greater reliance i.e. on digital payments.
“India’s journey of creating a digital financial infrastructure has been characterized by collaboration between the government, the regulator, banks and fintech startups. The collaboration has helped to advance the country’s goal of enabling financial infrastructure. It also has provided rapid growth in payments digitization for citizens of India,” said Kaushik Roy, the VP and head of product management, of ACI Worldwide.
The above condition has also given birth to India’s fortune companies like PhonePe and Paytm.
Kaushik Roy also said that the Covid pandemic has accelerated the adoption of digital payments for first-time users.
So that’s all about India ranks top position in Digital Transaction
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