One of the fastest-growing FinTech markets globally, India ranks the highest in the FinTech adaptation rate amounting to 87%, which is significantly higher than the global average rate of 64%.
The Indian Fintech market is presently estimated at 31 billion dollars and is predicted to expand at a CAGR of 22% to 84 billion dollars by 2025. At a CAGR of 20%, the value of Fintech transactions is expected to increase from US$ 66 billion in 2019 to US$ 138 billion in 2023.
As of May 2021, 224 banks had signed up for India's United Payments Interface (UPI), which had recorded 2.6 billion transactions worth $68 billion, a 15x increase over the same period in 2018. The mobile wallet market in India is expected to develop at a CAGR of 150 percent to reach US$ 4.4 billion by 2022, with mobile wallet transactions going Rs. 32 trillion (USD$ 492.6 billion) within the same period.
The rapid growth of Indian FinTech markets can be attributed to the following:
- Government initiatives like UPI and Digital India.
- Growing disposable income.
- Identity formalization through Aadhar saw 1.2 billion enrollments.
- Increased smartphone diffusion.
- Increased level of banking penetration via the Jan Dhan Yojna.
- Wide middle-class expansion.