Online Payments Report: Indian Households to Make Over 50% Non-Cash Transactions by FY26

Redseer Strategy Consultants released a report titled ‘Future of Online Payments’ in collaboration with Plural by Pine Labs.

The report “highlights growth projections for the forecast period FY23-26 and shares insights on segments like UPI, Bharat Bill Payment System (BBPS), Embedded Finance, and e-commerce.”

As per the report, UPI is “projected to clock 30-35 per cent growth in transaction value by FY26, with online food delivery and e-commerce already witnessing over 60 per cent use of UPI as a preferred payment mode.”

B Amrish Rau, CEO, Pine Labs said:

“From the foundational work on the JAM trinity to the development of India Stack, India has quietly orchestrated a revolution in online payments. These insights coming from the Redseer analysis especially on the BBPS and UPI adoption are a tell-tale sign of things to come. The future is increased tech-enabled digitisation at the online and offline point of sale and at Pine Labs we are happy to be playing a part in it.”

Jasbir Juneja, Partner at Redseer, said:

“Our research suggests that online shoppers in India are expected to grow by 50% in the coming three years to reach >30 Cr by FY26, further paving the way for the reach of online payments in the country.” 

The RBI conceptualized payment system, BBPS driven by National Payments Corporation of India (NPCI) also finds a mention in the Redseer report.

As per the Redseer findings, BBPS is poised to witness a 30% increase in transaction volumes and increase from 110 crore transactions in FY23 to 240 crores by FY26.

To access the complete report, check here.

As noted in the update, Redseer Strategy Consultants “is India’s largest and renowned strategy consultancy firm with a global footprint.”

Founded in 2009, Redseer collaborates “with leaders and organizations to build thriving digital businesses.”

Using proprietary methodologies, deep consumer understanding, high-quality research, and an entrepreneurial mindset, Redseer offers solutions “in private equity, growth advisory and consumer research.”

Headquartered in Bangalore, Redseer claims it “has a strong team of 200+ consultants in India and around the world.”

As covered, Pine Labs claims it is “a leading merchant commerce omnichannel platform operating across India and Southeast Asia.”

Pine Labs’ tech-first approach “to digital payments and focus on simplification at the front end aims to help many businesses embrace fintech products at scale.”

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