Total financial transactions on retail digital payment platforms in India are projected to grow by 400 per cent from Rs 20,000 crore in 2017-18 to Rs 100,000 crore by 2023, says a study by the City of London Corporation and PwC India.
“By 2020, around 720 billion transactions are projected to be made in India through the use of Unified Payments Interface (UPI) technology,” the study said. Currently, 40 per cent of the total population of India is currently unbanked and more than 80 per cent of the payments in India are still made by cash.
The newly introduced Payment Service Directive (PSD2, introduced in January 2018) has led to a high cost of compliance for companies, it said. “The UK’s reputation as a leader in cyber security and India’s expertise in software development offers significant cooperation opportunities. However there is currently a gap in skills development that regulators can address,” the study said. The joint study also proposed a number of recommendations for future collaboration between India and the UK, urging regulators in both countries to engage with payment firms to educate them on potential opportunities and challenges.
“The City Corporation has long supported the growth of exchanges in fintech between the UK and India, and is a partner of the Indian High Commission’s Access India programme…”