India Payment Service Market Outlook to 2027F
driven by government initiatives & rising need for faster payment modes
Region:Asia
Author(s):Sunaiyna Varma, Anurag Jha
Product Code:KR1302
February 2023
171
About the Report
The report provides a comprehensive analysis of the potential of the Payment Service Market in India. The report also covers a comprehensive analysis of the payment services, payment gateway, m-wallet, POS Terminals, credit and debit card, payment security and prepaid instruments market in India.
Its market segmentation include by mobile and desktop payments, by modes of payment, by type of industry; Credit and Debit card coverage segmentation by number of transaction, by transactional value, by number of outstanding cards; IMPS segmentation by type of institution; AePS segmentation by types of banks - number of AePS operator; PoS Terminal segmentation by number of terminals, by metro and non-metro cities, by end user industry. The report concludes with future market projections of each segmentation.
Market Overview:
According to Ken Research estimates, the India Payment Service Market – which grew at a CAGR of 11.3% in the period of FY16-FY22 – is expected to grow at a CAGR of 5.7% in the forecasted period of FY22-FY27F, owing to the launch of new and innovative payment products, increasing smartphone adoption, a growing need for faster payment modes, and a strong push from the Government and regulators towards adoption of digital channels.
- Surge in growth of electronic payments in India, along with rising E-commerce and M-commerce transactions are further expected to give a boost to numerous entities including payment gateway service providers and payment aggregators that facilitate online payments in the country.
- Digital transactions have recovered from their lows in the months of the lockdown and gained traction over the rest of the year with a growing preference for contactless transactions and tailored financial offerings by FinTech players to adapt to the needs of end-users.
Key Trends by Market Segment:
By Mode of Payment: Credit transfers from payment methods such as UPI, AePS, ABPS, IMPS have the highest share among modes of payment in India payment service market, followed by Card Payments. This is a direct result of wide range of alternatives under credit transfer made available to a large section of society, such as UPI and AePS, some of which even allow transactions without smartphones or internet connection.
Competitive Landscape
Future Outlook
The India Payment Service Market witnessed a growth during the period of FY16-FY22 and the market would continue to grow owing to the launch of new and innovative payment products, increasing smartphone adoption, a growing need for faster payment modes, and a strong push from the Government and regulators towards adoption of digital channels.
Scope of the Report
Its market segmentation include by mobile and desktop payments, by modes of payment, by type of industry; Credit and Debit card coverage segmentation by number of transaction, by transactional value, by number of outstanding cards; IMPS segmentation by type of institution; AePS segmentation by types of banks - number of AePS operator; PoS Terminal segmentation by number of terminals, by metro and non-metro cities, by end user industry.
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By Payment Device |
Mobile Desktop |
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By Mode of Payment |
CCIL Operated Systems RTGS Credit Transfers Debit Transfers and Direct Debits Card Payments Prepaid Payment Instruments (PPIs) Paper-Based Instruments |
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By Type of Industry |
Online Travel Financial Services Retail (Online and Offline) Others |
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Credit and Debit Card Coverage |
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By Number of Credit and Debit Card Transactions |
PoS ATM |
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By Credit and Debit Card Transaction Value |
PoS ATM |
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By Number of Terminals |
PoS ATM |
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By Number of Outstanding Cards |
Credit Card Debit Card |
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IMPS Consumer Payment Landscape |
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By Type of Institution |
Small Finance Bank PSU Private and Payments Bank Public and Private Instutions Regional Rural Banks Co-operative Banks |
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AePS Consumer Payment Landscape |
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By Type of Banks: Number of AePS Operator |
Mainline Commercial Banks Regional Rural Banks Co-operative Banks Payment Banks Small Finance Banks |
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India PoS Terminal Market |
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By Number of Terminals |
Active Terminal Inactive Terminal |
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By Metro and Non-metro Cities |
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By End User Industry |
Large Enterprises SME’s Micro Merchants |
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report
- Banks and Financial Institutions
- Cash Reconciliation Companies
- Payment Aggregators
- Payment Network Companies
- Payment Interface Companies
- M-Wallet Companies
- Payment Gateway Companies
- PoS Terminal Companies
- M-PoS Terminal Companies
Time Period Captured in the Report
- Historical Period: FY16-FY22
- Base Year: FY22
- Forecast Period: FY22– FY27F
Companies
Major Players Mentioned in the Report
M-Wallet Companies
- Paytm
- Mobikwik
- Freecharge
- Oxigen
- Telecom Operators (Jio Money, Airtel Money, Idea Money, Vodafone M-Pesa)
- Others (SBI Buddy, PayZapp by HDFC, Pockets by ICICI and other bank wallets)
Payment Gateway Companies
- PayU
- Paypal
- Razorpay
- Others (CC Avenue and Citruspay)
PoS Terminal Companies
- Ingenico
- Verifone India
- PineLabs
- PAX Technologies
- Ezetap
- Itzcash
M-PoS Companies
- M-Swipe
- Payswiff
- Mosambee
- Bijlipay
Table of Contents
1. Executive Summary
1.1 Executive Summary- India Payment Service Market
1.2 Executive Summary- Credit and Debit Card Coverage
1.3 Executive Summary- IMPS (Immediate Payment Service) Consumer Payment Landscape
1.4 Executive Summary- AePS (Aadhaar Enabled Payment System) Consumer Payment Landscape
1.5 Executive Summary- Unstructured Supplementary Service Data – Bharat Interface for Money (Ussd-bhim) Consumer Payment Landscape
1.6 Executive Summary- UPI (Unified Payments Interface) Consumer Payment Landscape
1.7 Executive Summary- India M-Wallet Market
1.8 Executive Summary- India PoS (Point of sale) Terminal Market
2. Research Methodology
2.1 Market Size and Modeling
2.2 Definitions and Approach- India Payment Services Market
2.3 Definitions and Approach- India mPoS and PoS Market
2.4 Definitions and Approach- India M-Wallet Market
2.5 Definitions and Approach- India Payment Gateway Market
2.6 Other Definitions
3. India Payment Services Market
3.1 Introduction to India Payment Services Market
3.2 Snapshot on India Bill Payment Market
3.3 Private Banks V/S Public Sector Banks
3.4 Major Cards in E-commerce Segment
3.5 Growth of RuPay Cards in India
3.6 Snapshot on India Omni-Channel Payments Processing Market
3.7 Snapshot on India Bank Reconciliation Software Market
3.8 India Payments Services Market Size, FY’2016-FY’2022
3.9 India Payment Services Market Segmentation, FY’2017-FY’2022
3.10 India Payment Services Market Future Outlook and Projections, FY’2022-FY’2027E
4. Regulatory Framework in India Payment Services Market
4.1 Role of Government in India Payment Services Market
4.2 Overview of Payments and Receipts in Government Ministries/Departments
4.3 Role of Reserve Bank of India (RBI): The Apex Regulator Of India’s Monetary System, Including Payment Services
4.4Role of Indian Financial Technology and Allied Services (IFTAS)
4.5 Role of National Payments Corporation of India (NPCI)
4.6 Evolving Outlook Of The Public Agencies
4.7 Overview of the KYC initiative
4.8Localized Data Storage of Transactions and its Impact on Various Players
5. Credit and Debit Card Coverage
5.1 Credit Cards, FY’2017-FY’2022
5.2 Debit Cards, FY’2017-FY’2022
5.3 Number of ATMs and POS Terminals, FY’2013-FY’2022
5.4 Number of Outstanding Cards in India Payment Services Market, FY’2015-FY’2022
5.5 Cross Comparison of Different Payment Modes in India Payment Services Market
5.6Value added services
6. Immediate Payment Service (IMPS) Consumer Payment Landscape
6.1 IMPS Transactions Overview, FY’14-FY21
6.2 Entities Offering Imps
6.3 Working Model of IMPS Payment Landscape in India Payment Services Market
6.4 Popular Uses of IMPS
6.5 IMPS Charges
7.Adhaar Enabled Payment System (AePS) Consumer Payment Landscape
7.1Advantages of AePS
7.2 AePS Transactions Overview, FY’2016-FY’2022
7.3 Entities Offering AePS, FY’2022
7.4Working Model of AePS Landscape in India
8. Unstructured Supplementary Service Data – Bharat Interface for Money (USSD-BHIM) Consumer Payment Landscape
8.1 USSD-BHIM Transactions Overview, FY’17 – FY’22
8.2 Number of Operators / Downloads
8.3 Government Initiative to Promote USSD-BHIM in India
9. Unified Payments Interface (UPI) Consumer Payment Landscape
9.1 Major Government Initiatives aimed to increase UPI Adoption
9.2 Number of UPI Transactions, FY’17-FY’22
9.3 Number of UPI Operators / Downloads, FY’16-FY’22
9.4 Working Model of UPI Landscape in India Payment Services Market
9.5Recent Trends in UPI Adoption
10. India M-Wallet Market
10.1 Introduction to India M-Wallet Market
10.2 Value Chain Analysis in India M-Wallet Market
10.3 Revenue Generation
10.4 Operations Involved In Using M-Wallet Services
10.5 India M-Wallet Market Size, FY’17-FY’22
10.6 Trends and Developments in India M-Wallets Market
10.7 Government Regulations In India M-Wallets Market
10.8 Competitive Landscape Of Major Players Operating In India M-Wallets Market
10.9 Competition Scenario
10.10 Market Share Of Major Players Operating In India M-Wallets Market
10.11 Company Profiles Of Major Players Operating In India M-Wallets Market
10.12 Telecom Operators (Jio Money, Airtel Money, Idea Money, M-Pesa) Operating In India Mobile Wallet Market
11. India Point of Sale (PoS) + mPOS Terminal Market
11.1 Introduction to India Point of Sale (PoS) Terminal Market
11.2 Emerging Payment Trends:
11.3 Value Chain Analysis in India PoS Terminal Market
11.4 India PoS Terminal Market Evolution
11.5 India PoS Terminal Emerging Market Trends
11.6 India PoS Terminal Market Size, FY’2017-FY’2022
11.7 India PoS Terminal Market Segmentation, FY’2022
11.8 Comparative Landscape in India PoS Terminal Market
11.9 India PoS Terminals Market Future Outlook and Projections, FY’2018-FY’2027E
12. Prepaid Instruments
12.1 Closed User Group (“CUG”) Cards
12.2 NCMC Cards
12.3 Open Loop Prepaid Cards
12.4 National Electronic Toll Collection (NETC) program-FasTag
13. Cloud / Security Outsourcing in Payments Technology
13.1 Global IOT Security Spending
13.2 Cyber Threats in India
13.3 Regulatory Landscape of Cyber Security Framework in India
13.4 RBI Cyber Security Guidelines for Banks and Financial Institutions
13.5 India Cloud Security Services Market
13.6 India Payment Security Services Market
14. Government Regulations
14.1 Payments Infrastructure Development Fund
14.2 Digital Incentives as mentioned in the budget
14.3 The Future of RUpay Interchange
15. COVID Impact
15.1 Assessment of COVID Impact on Contactless transactions and POS terminals
16. Coverage on OMC Digital Space
16.1 Introduction to the fuel retail sector in India
16.2 Market Snapshot of the OMC Space
16.3 Future of digital spend in Fuel outlets
AGS Positioning
Disclaimer
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Research Methodology
Frequently Asked Questions
01 What is the size of payment processing market in India?
The India payment service market size reached USD 1,460 Mn in 2022 and is excepted to reach USD 2,800 Mn by 2027.
02 Who are the Major Players in the India Payment Service Market?
Paytm, Mobikwik, Freecharge, Oxigen, PayU, Paypal and Razorpay are few of the major players in the market.
03 What is the market share of India payments?
India accounts for nearly 40% of global real-time digital payments, according to estimates from the Indian government.
04 What is the trend in payments industry in India?
The Indian payments market is expected to reach CAGR of 11.4% during the period 2022-2027.
What percent of Indians use UPI? The UPI accounted for 75% of digital transactions in the country during 2022-23, and is expected to record 1 Bn transactions per day by 2027.
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