India is one of the leading countries adopting technology and digitization across its industries. Both public and private sectors in India are going through rapid digital transformation by embracing automation and advanced data analytics. The Fintech sector in the country is one of the industries at the forefront of transformation. India’s digital payment sector has been evolving since demonetization. The Covid-19 pandemic has accelerated the digital shift and now most of the consumers are accessing online services thus enhancing the digital payment market.
According to a Research and Markets report that explored 800 million Indian mobile payment consumers, the Indian digital payments industry stood at INR 2,153 trillion in 2020 and will grow at 27% CAGR to reach INR 7,092 trillion by FY25.

The digital payment ecosystem of India is expanding with the growth of different payment channels. The government has contributed to the growth of Fintechs by redefining the services through the introduction of strategies like UPI, IMPS, e-KYC, and Aadhar as an authentication method. Private fintech startups like NeoPay, PhonePe, PayTM, and Razorpay have revolutionized the digital payment market in India.