According to a report released by Redseer Strategy Consultants in collaboration with Plural by Pine Labs, it is projected that 85% of businesses in India will be digitally enabled by FY26. This means that a large majority of businesses in India will have embraced digital technologies and processes for their operations. This digital transformation is expected to have a significant impact on the way users transact, from bustling cities to remote villages.
The widespread adoption of digital payments in India can be attributed to several factors. First, the penetration of smartphones and the internet has been instrumental in driving the adoption of digital payment services. With more than 70 crore (700 million) internet users, India has the second-highest number of internet users in the world, trailing only behind China. The increasing availability and affordability of smartphones have made it easier for people across the country to access digital payment platforms and conduct transactions digitally.
Additionally, favorable government policies have played a crucial role in promoting digital payments. The Indian government has implemented various initiatives to encourage the use of digital payment methods, such as demonetization in 2016, which aimed to reduce cash transactions and promote a cashless economy. These policies have created an environment conducive to the adoption of digital payment services and have incentivized businesses and individuals to embrace digital transactions.
The report suggests that India, with its population of 140 crore (1.4 billion), is well-positioned to become a global leader in digital payments in the coming years. The rapid growth of digital infrastructure, coupled with a large user base, presents significant opportunities for businesses and entrepreneurs in the digital payment sector. The increasing digitization of businesses will not only streamline transactions but also foster financial inclusion by providing access to banking and payment services to individuals in underserved areas.
Overall, the findings of the report highlight the transformative potential of digital payments in India. As more businesses and individuals adopt digital payment technologies, it is expected to revolutionize the way transactions are conducted, leading to greater efficiency, convenience, and financial inclusion across the country.