Indians to make 50% of their payments digitally by FY26

UPI is projected to clock 30-35 per cent growth in transaction value by FY26, with online food delivery and e-commerce already witnessing over 60 per cent use of UPI as a preferred payment mode, reveals a report.

“Our research suggests that online shoppers in India are expected to grow by 50 per cent in the coming three years to reach more than 30 crore by FY26, further paving the way for the reach of online payments in the country,” said Jasbir Juneja, Partner at Redseer.

The report titled ‘future of online payments’ prepared by Redseer Strategy Consultants in collaboration with Plural by Pine Labs, highlights growth projections for the forecast period FY23-26 and shares insights on segments like UPI, Bharat Bill Payment System (BBPS), embedded finance, and e-commerce.

Talking to Bizz Buzz, B Amrish Rau, CEO, Pine Labs said: “Online payments is an exciting space to be in right now. These findings by Redseer shed light on how digital India is fast evolving and a rising number of merchants are leveraging financial technology at the point of sale.” From UPI to BBPS, cutting-edge payments tech is accelerating the pace of adoption of digital payments in India, he added.

According to Rau, “From the foundational work on the JAM (Jan Dhan-Aadhaar-Mobile) trinity to the development of India Stack, India has quietly orchestrated a revolution in online payments. These insights coming from the Redseer analysis especially on the BBPS and UPI adoption are a tell-tale sign of things to come. The future is increased tech-enabled digitisation at the online and offline point of sale, and at Pine Labs we are happy to be playing a part in it.”

The RBI conceptualised payment system, BBPS driven by National Payments Corporation of India (NPCI) also finds a mention in the Redseer report. As per the Redseer findings, BBPS is poised to witness a 30 per cent increase in transaction volumes and increase from 110 crore transactions in FY23 to 240 crores by FY26.