India’s digital payments to triple from 159 bn to 481 bn by FY29

India’s digital payments industry is witnessing remarkable growth, with transaction volumes increasing by 42% year-on-year (YoY) in FY 2023-24, according to a PwC report.

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India’s digital payments industry is experiencing unprecedented growth, with transaction volumes soaring by 42% year-on-year (YoY) in FY 2023-24, according to a new report by PwC. This surge in digital transactions highlights the rapid adoption of cashless payments across the country, driven by technological advancements and consumer demand for convenience.

The report projects a threefold expansion in transaction volumes, which are expected to rise from 159 billion in FY 2023-24 to a remarkable 481 billion by FY 2028-29. Meanwhile, the total transaction value is forecasted to nearly double, growing from INR 265 trillion to Rs 593 trillion during the same period.

Unified Payments Interface (UPI) has been at the forefront of this digital revolution. In FY 2023-24, UPI recorded a staggering 57% YoY growth in transaction volume, reaching over 131 billion transactions. This phenomenal rise has solidified UPI’s dominance in India’s digital payments ecosystem, accounting for more than 75% of the total transaction volume in FY23.

Looking ahead, UPI’s influence is only set to grow. By FY 2028-29, UPI transactions are expected to make up 91% of India’s retail digital payments, with volumes forecasted to hit 439 billion. In terms of transaction value, UPI transactions reached Rs 199.9 trillion in FY24 alone, reflecting its pivotal role in facilitating seamless, real-time payments.

With UPI’s market penetration showing no signs of slowing down, the PwC report predicts that daily UPI transactions could hit 1 billion during FY 2027-28, eventually soaring to 1.4 billion by FY 2028-29. This rapid growth underscores India’s transition toward a digital-first economy, as UPI continues to revolutionize the way consumers and businesses transact.

As India’s digital payments landscape evolves, UPI will remain a critical driver of financial inclusion and innovation, paving the way for a future where cashless transactions become the norm.