Non-cash transactions are below market potential in India as all banks are not promoting digital payments, said a report.
Global digital payment volumes continue to increase, with annual growth projected to top 10 per cent for the first time to reach 426.3 billion transactions in 2015, up from 8.9 per cent growth in 2014, said the World Payments Report 2016 released today by Capgemini.
Capgemini had teamed with BNP Paribas to co-develop the 12th edition of the Wold Payments Report.
The transaction volumes grew at 8.9 per cent to reach 387.3 billion in 2014. The highest growth rate – 31.5 per cent – was recorded in Emerging Asia.
China with a 47 growth rate and India (13.4 per cent) were the main engines of growth in this region.
“While growth in non-cash transactions in India is improving, it is still below full market potential. Despite the National Payments Corporation of India’s efforts, not all banks promote digital payments as the card acceptance network is considered too narrow,” it said.
The 11 payment bank licences granted by the Reserve Bank of India in August 2015 are an attempt to bring more dynamism to the market.
It further said China’s outstanding growth is likely due to several factors, including its underlying economic growth, rising living standards and entry of millions of people into the banking system.