As India’s internet economy is projected to grow to $1 Tn by 2030 from $175 Bn in 2022, DPI (digital public infrastructure) continues to drive this growth thesis, ensuring an inclusive and expansive digital future, a report by consulting firm Redseer Strategy Consultants said.
The open network for digital commerce (ONDC), one of the DPIs initiated by the government, is poised to push growth in the ecommerce space across sectors and potentially generate $250-300 Bn in GMV (gross merchandise value) by 2030, the report added citing its study.
Of the surveyed ecommerce merchants, 70% reported an increase in sales driven by higher unified payments interface (UPI) adoption and believe that by 2027, almost 90% of the ecommerce payments will be conducted through UPI.
The study also found that both Aadhaar card and UPI emerged as the lifeline to both the general public and businesses since the pandemic period. Currently, UPI enables about 45% of the payments in the country, and has brought down all the geographical barriers. Interestingly, about 70% of the UPI user base hails from outside Tier 1 cities with 80% of the new users hailing from Tier 2 cities and surroundings.
Redseer attributed this growth to the robust digital payments index (DPI) which includes DigiLocker 2.0, Account Aggregator (AA), Open Network for Digital Commerce (ONDC), Ayushman Bharat Health Account (ABHA), Digital Infrastructure for Knowledge Sharing (Diksha) among others.
In the fintech segment, a major change driven by the advent of UPI is the age group of discount brokers’ client base. Currently, 85% fall within the 20-30 age bracket, with Tier 2 cities leading the way in lending, the report said.
According to the study, eKYC has reduced the time taken to open demat accounts from 3-7 days to less than a day. It has helped lenders and account aggregators expedite the process and reach out to demographics located beyond Tier 1 cities in India.
Recently, the National Payments Corporation of India (NPCI) revealed that UPI transactions have crossed 11 Bn mark for the second consecutive month, as the country recorded 1,124 Cr UPI transactions in November.
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