India’s fintech sector has been on a roll for sometime. In 2020, out of 900+ startup deals and $11.5 Bn total funding, fintech topped the chart with $2.1 Bn worth of funding across 131 deal counts, according to Inc42 Plus Annual Indian Tech Startup Report 2020.
Within the fintech space, payments remains the largest subsector in terms of the total number of startups.
With UPI payments leading from the front, the value of digital payments in India is expected to grow over three-folds to INR 7,092 Tn by 2025 from around INR 2,162 Tn in 2019-20, according to Bengaluru-based consultancy firm RedSeer.
The RBI data too reveals that between 2015-16 and 2019-20, digital payments (volume) have grown at a compounded annual growth rate (CAGR) of 55.1% – from 593.61 Cr in FY16 to 3,434.56 Cr In FY20.
However, there are a number of issues that the Indian payments industry has been facing.
Ahead of the Union Budget 2021, the industry expects the finance minister to address some of the pressing…