India Payments Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The India Payments Market Report is Segmented by Mode of Payment (Point-Of-Sale [Card Payments, Digital Wallet, Cash, and Others] and Online Sale [Card Payments, Digital Wallet, and Others]) and End-User Industry (Retail, Entertainment, Healthcare, Hospitality, and Other End-User Industries). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

India Payments Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

India Payments Market Size

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India Payments Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 421.50 Billion
Market Size (2030) USD 960.22 Billion
CAGR (2025 - 2030) 17.90 %
Market Concentration Medium

Major Players

India Payments Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of India Payments Market with other markets in Technology, Media and Telecom Industry

Automation

Digital Commerce

Electronics

Information Technology

Media and Entertainment

Security & Surveillance

India Payments Market Anlaysis

The India Payments Market size is estimated at USD 421.50 billion in 2025, and is expected to reach USD 960.22 billion by 2030, at a CAGR of 17.9% during the forecast period (2025-2030).

  • Shopping for goods and services on the internet, supported by an increasing number of online shoppers in India, is among the primary drivers for the payments market in the country, with payments made online through both UPI transactions and payment cards. The convenience of digital wallets and the emphasis on cashless transactions further fuel the adoption of online payments using cards and digital wallets, supporting market growth.
  • However, the expansion of digital payments extends beyond applications integrated with the UPI ecosystem. Payment cards, particularly credit cards, have demonstrated a robust increase in both user adoption and transaction volumes in India. According to the Reserve Bank of India (RBI), ATM withdrawal transactions reached over 826.49 thousand in March 2023, up from 679.82 thousand in March 2022. Furthermore, credit card transactions at point-of-sale terminals rose to 140 million in March 2023, compared to 113 million in March 2022 made via credit cards. This data underscores a significant rise in cash withdrawals via ATMs over the past year.
  • The payments market has seen a surge in diverse stakeholders, including wallets, payment service providers (PSPs), FinTechs, and BigTechs, all competing to establish their digital payment platforms. While these new players may not offer the full suite of services traditional banks do, they excel in catering to specific niches, delivering enhanced customer experiences, often at more competitive rates. Furthermore, these entrants face less stringent regulations than banks, translating into significant cost advantages. To attract and retain customers, FinTechs, wallets, and BigTechs often leverage rewards and cashback approaches. This customer-centric approach has not only driven down pricing but also intensified competition in the market.
  • Government regulatory support, continuous technical advancements by the National Payments Corporation of India (NPCI), and innovative solutions from an expanding network of payment service providers have significantly increased public interest. There was an increased demand for contactless payments during the COVID-19 pandemic, and the trend continued even as the pandemic receded, indicating a long-standing shift in consumer behavior.
  • The pandemic raised the demand for online purchases and cashless transactions due to the closure of physical shops. It transformed consumer buying behavior to go for payment options through digital wallets, which has been supported by the growth of mobile wallets and internet services in all the regions of the country, creating a market growth opportunity for the payment market during the pandemic and post-pandemic period in India.

India Payments Industry Overview

The Indian payments market is fragmented due to the presence of several companies. However, a few significant market players, like Paytm, have contributed considerably to the market's growth. There is intense market competition as different players compete to maximize their profits. Payment aggregators are likewise attempting to expand their market share by implementing various measures, including expanding their product line and adopting strategies like acquisitions and partnerships. Some major companies in the payments market are Visa Inc., Mastercard Inc., Phonepe Pvt Ltd (Flipkart Internet Pvt. Ltd), Google Pay (Google LLC), and Rupay.

  • June 2024: Hitachi Payment Services obtained final authorization from the Reserve Bank of India (RBI) to operate as an online payment aggregator under the Payments and Settlement Systems Act. This approval allows the company to enhance its digital solutions and services portfolio, offering a comprehensive array of innovative and merchant-friendly payment options, including UPI, net banking, cards, and wallets, along with value-added services such as EMI, pay later, buy now pay later (BNPL), link-based payments, and customized loyalty solutions for merchants.
  • May 2024: Paytm Payments Bank (PPBL) moved its bill payment operations to Euronet Services India, a US-based payment technology firm that specializes in managing backend settlement systems for numerous digital payment channels in India after recently switching its retail point-of-sale business to RBL Bank and merchant payment settlement services to Axis Bank.
  • May 2024: Amnex Infotechnologies and Mastercard formed a strategic collaboration to develop advanced payment acceptance solutions within the urban mobility industry. This initiative aims to enhance the efficiency and convenience of transit systems. The partnership highlights the mutual commitment of both companies to co-create advanced transit solutions. They plan to implement these innovations across 20 cities in India, beginning with two pilot projects and subsequently extending their efforts to the Middle East and other regions.

India Payments Market Leaders

  1. Visa Inc.

  2. Mastercard Inc.

  3. PhonePe Pvt Ltd. (Flipkart Internet Pvt Ltd)

  4. Google pay (Google LLC)

  5. Rupay

  6. *Disclaimer: Major Players sorted in no particular order
India Payments Market Concentration
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India Payments Market News

  • April 2024: Groww, a financial services platform, and Worldline ePayments, a digital payment processing company, obtained licenses from the RBI to function as online payment aggregators. Specifically, Groww obtained the license for its UPI payments platform, Groww Pay. Similarly, Worldline ePayments India received the license, enabling the company to offer payment services to merchants, including e-commerce and online businesses.
  • April 2024: The Reserve Bank of India (RBI) mandated that non-bank entities offering physical point-of-sale (PoS) services must notify the regulator of their intent to seek authorization within 60 days. They must then submit their applications by May 2025 for operational approval. The RBI also stated that non-bank physical payment aggregators (PA-Ps) that do not meet the net worth requirements or fail to apply for authorization within the specified timeframe must cease operations by July 2025.

India Payments Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definitions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Stakeholder Analysis
  • 4.3 Industry Attractiveness-Porter's Five Forces Analysis
    • 4.3.1 Bargaining Power of Suppliers
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry
  • 4.4 Evolution of the Payments Landscape in India
  • 4.5 Key Market Trends Pertaining to the Growth of Cashless Transactions in India
  • 4.6 Impact of COVID-19 on the Payments Market in India

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Robust Growth of E-commerce and Rise of M-commerce is Expected to Drive the Payments Market
    • 5.1.2 Enablement Programs by Key Retailers and Government Encouraging Digitization of the Market
    • 5.1.3 Real-time Payments, such as UPI and Buy Now Pay Later to Drive the Indian Payments Market
  • 5.2 Market Challenges
    • 5.2.1 Higher Rate of Failure in Digital Transactions
  • 5.3 Market Opportunities
    • 5.3.1 Move Toward Cashless Society
    • 5.3.2 New Entrants to Drive Innovation Leading to Higher Adoption
  • 5.4 Key Regulations and Standards in the Digital Payments Industry
  • 5.5 Analysis of Major Case Studies and Use-cases
  • 5.6 Analysis of Key Demographic Trends and Patterns Related to the Payments Industry in India (Coverage to Include Population, Internet Penetration, Banking Penetration/Unbanking Population, Age & Income, etc.)
  • 5.7 Analysis of the Increasing Emphasis on Customer Satisfaction and Convergence of Global Trends in India
  • 5.8 Analysis of Cash Displacement and Rise of Contactless Payment Modes in India

6. Market Segmentation

  • 6.1 By Mode of Payment
    • 6.1.1 Point of Sale
    • 6.1.1.1 Card Payments (Includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
    • 6.1.1.2 Digital Wallet (Includes Mobile Wallets)
    • 6.1.1.3 Cash
    • 6.1.1.4 Other Modes of Payment
    • 6.1.2 Online Sale
    • 6.1.2.1 Card Payments (Includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
    • 6.1.2.2 Digital Wallet (Includes Mobile Wallets)
    • 6.1.2.3 Others (Includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
  • 6.2 By End-user Industry
    • 6.2.1 Retail
    • 6.2.2 Entertainment
    • 6.2.3 Healthcare
    • 6.2.4 Hospitality
    • 6.2.5 Other End-user Industries

7. Competitive Landscape

  • 7.1 Company Profiles
    • 7.1.1 Visa Inc.
    • 7.1.2 Mastercard Inc.
    • 7.1.3 PhonePe Pvt Ltd (Flipkart Internet Pvt Ltd)
    • 7.1.4 Google Pay (Google LLC)
    • 7.1.5 Rupay
    • 7.1.6 Paytm (One97 Communications Limited)
    • 7.1.7 Amazon Pay (Amazon.com Inc.)
    • 7.1.8 American Express Company
    • 7.1.9 One MobiKwik Systems Limited
    • 7.1.10 Freecharge Payment Technologies Pvt. Ltd
  • *List Not Exhaustive

8. Investment Analysis

9. Future Outlook of the Market

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India Payments Industry Segmentation

Payments entail the transfer of money from one party to another in exchange for goods, services, or the fulfillment of a legal obligation. This transfer can occur through various methods, including credit and debit cards, digital wallets, bank transfers, and virtual currencies.

The Indian payments market is segmented by mode of payment (point-of-sale [card payments, digital wallet, cash, and others] and online sale [card payments, digital wallet, and others]) and end-user industry (retail, entertainment, healthcare, hospitality, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Mode of Payment Point of Sale Card Payments (Includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (Includes Mobile Wallets)
Cash
Other Modes of Payment
Online Sale Card Payments (Includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (Includes Mobile Wallets)
Others (Includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
By End-user Industry Retail
Entertainment
Healthcare
Hospitality
Other End-user Industries
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India Payments Market Research Faqs

How big is the India Payments Market?

The India Payments Market size is expected to reach USD 421.50 billion in 2025 and grow at a CAGR of 17.90% to reach USD 960.22 billion by 2030.

What is the current India Payments Market size?

In 2025, the India Payments Market size is expected to reach USD 421.50 billion.

Who are the key players in India Payments Market?

Visa Inc., Mastercard Inc., PhonePe Pvt Ltd. (Flipkart Internet Pvt Ltd), Google pay (Google LLC) and Rupay are the major companies operating in the India Payments Market.

What years does this India Payments Market cover, and what was the market size in 2024?

In 2024, the India Payments Market size was estimated at USD 346.05 billion. The report covers the India Payments Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the India Payments Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

India Payments Industry Report

The Digital Payment Industry Report India is segmented by mode of payment and end-user industries, highlighting the diverse applications across sectors such as retail, entertainment, healthcare, and hospitality. The payment industry in India is experiencing significant growth, driven by the increasing adoption of digital payment methods and government initiatives aimed at promoting a cashless economy. With a diverse range of options including cash, debit cards, credit cards, e-wallets, and prepaid cards, digital transactions are particularly popular among the younger demographic.

The shift from traditional cash-based transactions is supported by the widespread use of smartphones and the internet, alongside innovative payment products that enhance consumer convenience and security. The industry is segmented by methods and verticals, showing extensive application across different sectors. Regional analysis indicates varied adoption rates, with growth opportunities in both urban and rural areas. The competitive landscape features numerous players offering integrated solutions that cater to the evolving needs of consumers and businesses.

Market trends reveal a robust market growth, driven by the increasing market value and the contributions of market leaders. The market segmentation highlights the diverse consumer market, while the market overview provides a comprehensive analysis of the industry's dynamics. The market forecast and market predictions offer insights into future developments, emphasizing the potential for continued expansion.

Industry analysis and industry statistics provide detailed insights into the current state of the market, while industry trends and industry outlook shed light on future prospects. The industry size and industry sales data reflect the market's scale and economic impact. Research companies contribute valuable industry research and industry reports that inform stakeholders about market data and market review.

The report example and report pdf offer accessible formats for stakeholders to understand the market dynamics. The growth rate and market outlook are crucial indicators of the industry's trajectory, while the market review and market segmentation provide a detailed breakdown of different market segments. The industry information and market predictions help stakeholders make informed decisions, ensuring they stay ahead in a competitive market.