More Inclusive Digital Payments
A whopping 350 million Indians today are using digital payments in their everyday lives – this number is larger than the entire population of the United States! While this is a marvellous feat, have you realised that there are another 600 million banked Indians, who are still not using digital payment systems?
2025 will see a greater focus on this section of the population, making digital payments even more accessible and affordable for the underserved (people with feature phones, the differently-abled, the small businesses, the senior citizens etc).
Inclusion of other Form Factors
IoT-based form-factors will see a massive push in digital payments. 2025 will see improved payment processing systems via wearables and even other IoT-based devices like cars and refrigerators! I look forward to innovations in the biometric payments space, that will reimagine payments to make it as simple as blinking your eye.
Reduced Payment Frauds
This year we have unfortunately seen financial scams getting more ‘creative’, with fraudsters using tech to trick unsuspecting individuals and wiping their bank accounts clean. Our entire industry has not just taken note of this, but have also started implementing counter-measures. In 2025, we will see more targeted use of AI and ML for better real-time transaction monitoring, implementation of more robust security measures for UPI and cross-border transactions, and focus on better education to promote consumer awareness.
Seamless Forex Payments
Forex payments continue to remain a pain point for many Indians. Come 2025, we will bring the forex payments experience closer to that of domestic payments, with Revolut’s transparent charges and real-time tracking. The sector will also see improved government-fintech partnerships to smoothen the flow of money between nations, along with implementing strong controls, and expanding UPI presence across geographies.
Regulatory Frameworks Beyond Borders
A clear and enabling regulatory framework is essential for the growth of India’s payment ecosystem. In 2025 we can look forward to regulators collaborating beyond geographies, to facilitate smoother access to global markets. This can open up new channels, where reciprocal arrangements overseas could enable Indian companies to seamlessly transact worldwide.
What are your thoughts on the future of India’s payment ecosystem?
Source: Paroma Chatterjee
