Payments via mobile wallets to cross 531.8 trillion by 2028

Mobile wallet transactions saw CAGR of 72.1% from 2019 to 2023

Mobile wallet payment known as UPI was introduced in April 2016

India is witnessing a remarkable surge in mobile wallet adoption, swiftly positioning itself as the primary mode of payment, surpassing traditional methods such as cash and cards.

According to a recent report by GlobalData, a leading London-based data and analytics company, payments via mobile wallets in India are poised to exceed a staggering Rs 531.8 trillion by 2028, marking a notable compound annual growth rate (CAGR) of 18.3% between 2024 and 2028.

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The report highlights that the value of mobile wallet transactions in India experienced an impressive CAGR of 72.1% from 2019 to 2023, reaching Rs 202.8 trillion ($2.5 trillion) by 2023. This meteoric rise is attributed primarily to the concerted efforts by the government to promote digital payment methods, notably through the introduction of the mobile wallet-based instant payment solution known as the unified payments interface (UPI) in April 2016.

The widespread adoption of mobile wallet payments is further propelled by the government’s initiatives to encourage digital transactions, coupled with the extensive use of UPI-based QR code payments and a high level of merchant acceptance. Offering swift, secure, convenient, and cost-effective fund transfers and payments, UPI has the potential to revolutionize the payment landscape in India.

According to statistics from the National Payments Corporation of India (NPCI), the number of transactions surged to 12.1 billion, valued at Rs 18.3 trillion ($221.5 billion) in February 2024, up from 7.5 billion transactions worth Rs 12.4 trillion ($150.1 billion) recorded in February 2023.