UPI Digital Payments will continue to be India’s top choice for online money transfers. A new report from PwC India says UPI, Buy Now Pay Later (BNPL), and Central Bank Digital Currency (CBDC) will shape how India pays over the next five years.
Fast Growth Ahead
The Indian digital payments market is growing fast. By 2026, it may reach 217 billion transactions, up from 59 billion in 2022. UPI is leading this boom. In 2020-21, UPI hit 22 billion transactions and is expected to reach 169 billion by 2025-26.
Key Drivers
UPI’s growth will get a boost from cross-border tie-ups with other Asian countries for easy money transfers. Meanwhile, BNPL is catching up. It could grow from ₹36,300 crore now to over ₹3 lakh crore by 2025-26.
CBDC is also getting attention. According to PwC, India’s digital currency will work alongside today’s payment systems. It may help with direct benefit transfers, online and offline payments, and sending money abroad.
More Payment Options
The report also highlights other trends:
* More use of Fastag for tolls, parking, and fuel
* More cards and transit payments using NCMC (National Common Mobility Card)
* Better security with tokenisation for cards, laptops, wearables, and IoT devices
These steps will keep payments safe while making checkout smoother for repeat purchases, like groceries and food delivery.
Boost for Offline Payments
Offline payments are getting a push too. Many people in India still lack good internet. New RBI rules will help banks and fintech companies build better offline payment solutions.
Corporate Payments Growing Too
Companies are also using new payment solutions. They want tools that help run their business smoothly and save time.
India’s Future of Payments
Mihir Gandhi from PwC India says that banks, regulators, and tech companies are working hard to make payments safer and easier. With so many options — UPI, BNPL, CBDC, Fastag, and more — India’s digital payments future looks bright.