Customers enjoy low cost or free services, says ResearchAndMarkets
India FinTech transactions market stood at US$766.90 billion in FY2021 and is forecast to grow at a CAGR of 49.13% through to FY2027 as advancements in financial technologies and digital enhancements have brought significant changes in the money regulation industry of the country.
This advancement has reduced the cost which has led new players to enter the market, said a ResearchAndMarkets in a report on the industry on 12 Nov 2021.
“These services are available at a very low cost or for free to the customers, which has led to a huge growth in the market. The advancement of technology has become the key enabler of e-commerce which is expected to boost the India FinTech transactions market in the forecast period as online payment modes are mostly used in the digital shopping platform,” said the report “India FinTech Transactions Market”.
Consumers have transferred to net banking and other digital payment facilities to avail products including essential goods, groceries, electronics, clothing, medications, education related expenditures and others.
Moreover, the Digital India campaign is increasing the use of digital payments in brick and mortar stores including roadside vendors and small shops. All these factors are expected to drive the growth of the India FinTech transaction market.
The COVID-19 pandemic has accelerated the digital transformation, as the physical interactions are getting replaced through digital connectivity among the users which has given a boost to provide the financial services digitally to the end customers. A strong push from the government is anticipated to act as a key enabler for the growth of the India FinTech transactions market.
India FinTech transactions market can be segregated into payment modes, services, applications and regions. Based on payment modes, the market can be divided into Payment Interfaces, Payment Gateways, PoS Terminals, Prepaid Payment Instruments, Remittance and Others.
Out of these, payment interfaces segment held the largest market share of 69.99% in FY2021 as these payment models allow users to use their smartphones as a virtual debit card that has made the sending and receiving of money instant. Moreover, the concept of QR codes has removed the use of digital wallets altogether.
In terms of services, the market can be segmented into Payments, Fund transfer, Personal Finance, Loans, Insurance and Others. Payment services has dominated the market in 2021 as digital payments are widely accepted among all end users as compared to other financial services such as personal finance, loans, insurance, etc.
Moreover, the risk and challenges associated with carrying a large amount of cash are shifting the preference of consumers towards digital payment methods. Merchants are also adopting online acceptance of payments owing to governmental steps such as demonetization, GST among others.
India FinTech transactions market based on application can be segmented into Banking, Insurance, Securities and Others. The banking applications had a market share of 75.67% in FY2021 as FinTech technologies have been supporting banking applications from the very beginning.
However, with the adoption of advanced technologies such as artificial intelligence, distributed ledger technology, etc. Other financial domains such as insurance and loans are expected to be digitalized rapidly, indicating a high growth rate in these domains as well.
The top companies operating in the market are focusing on higher security data storage, in-house services, and expansion of sources to increase their shares in the market. These companies are developing advanced technologies to stay competitive in the market. Other competitive strategies include mergers and acquisitions and new service developments.
Major players leading in the India FinTech Transactions market are PhonePe Private Limited, Google India Digital Services Private Limited (GooglePay), One97 Communications Limited (Paytm), National Payments Corporation of India (NPCI) (BHIM App), Amazon Pay (India) Private Limited, ONE MOBIKWIK SYSTEMS LIMITED, Pine Labs Pvt Ltd, Mswipe Technologies Private Limited, Razorpay Software Private Limited, IndiaIdeas.com Limited (Billdesk), Lendingkart Finance Limited, Policybazaar Insurance Brokers Private Limited, Zerodha Broking Ltd, State Bank of India (YONO) and Dhani Services Limited. #banking #investment #technology /fiinews.com
