Transaction volumes on the RuPay network are expected to rise at a compound annual growth rate (CAGR) of 20% in the next three years. Transaction volumes are expected to hit 3.2 billion by 2025-26 (April-March) from 1.8 billion in 2022-23, a report by Pine Labs showed.
Card payment network RuPay works across automated teller machines, point-of-sale devices and electronic-commerce websites and supports domestic and international transactions. At the beginning of 2022-23, RuPay was accepted in over 200 countries at 42 million point-of-sale locations and 2 million automated teller machines.
Launched in 2014, the Pradhan Mantri Jan-Dhan Yojana (PMJDY) contributed to the significant growth of RuPay cards by providing banking services to the underprivileged. As of January 2022, there were ~65 crore RuPay debit cards in circulation, accounting for 65% of the total debit cards issued. By December 2022, 300 million electronic-commerce transactions were made using RuPay. While various financial service providers have adopted RuPay credit cards on the unified payments interface, scaling-up will take time.
“Credit transactions on UPI has seen month-on-month growth. Now, distribution of RuPay cards, along with merchant MDR acceptance on cards, needs to be scaled up,” says Tanya Naik, head of online and omnichannel business, Pine Labs.
Going ahead, e-Rupi and Central Bank Digital Currency will lead the innovation in the payments segment. Voice-enabled payments are expected to gain traction going ahead.