India is forecast to see explosive growth in the coming years. The period between FY2020 to FY2025 is termed Payments 4.0, which is projected to witness 548 billion digital transactions that are expected to be primarily driven by contactless, offline and mass reach solutions
The core Indian banking systems will increase manifold with new offline payment solutions and innovative ways of making payments come into effect. Digital transactions will increase in a big way by 2025, according to Joachim Samuelsson, CEO of Crunchfish AB, a Swedish fintech company, reported ET.
India is forecast to see explosive growth in the coming years. The period between FY2020 to FY2025 is termed Payments 4.0, which is projected to witness 548 billion digital transactions that are expected to be primarily driven by contactless, offline and mass reach solutions.
“This necessitates the need for offline payment solutions and new and innovative ways of making the payments to support this growth and in order to make it a reality,” Samuelsson said.
Samuelsson also said going forward, offline would augment online payments. For example, offline UPI payments would increase the volume of digital payments while also deepening financial inclusion in the country.
“India has leapfrogged in the adoption of digital payments and hence the fintech players in India should definitely leverage the technical expertise and the learnings from the Swedish players.”
— Joachim Samuelsson, CEO of Crunchfish AB
According to him, the banking system remains congested and that is why core banking solely will not work in facilitating the expected explosive growth of digital transactions in the coming years.
So, financial solutions including mobiles as well as non-mobile devices such as smart cards and wearables that work regardless of connectivity were expected to emerge.
According to Crunchfish AB, this will be beneficial for swift and easy-to-use payments, in a multitude of use case scenarios, for convenience stores, transit and toll. It can also enable financial inclusion of the nonprivileged, children, and elderly that may not be able to use mobiles or live in an area without network connectivity, the company said.
“India has leapfrogged in the adoption of digital payments and hence the fintech players in India should definitely leverage the technical expertise and the learnings from the Swedish players,” he said.
India’s innovation hub and ecosystem enabler, Technology Hub, commonly known as T-Hub, and Crunchfish has launched India’s first Augmenting Payments Accelerator programme, enabling fintech companies to create innovative payment products and services based on Crunchfish Digital Cash platform.
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