Digital Payments Diffusion in Emerging and Developed Economies

Abstract

Digital India initiative aimed at improving the lives of the common men in India through technology. Efforts have been made to make technology in India as accessible, affordable and value addition. Digital initiatives have been undertaken in India in almost all sectors. Payments and settlements are not exceptions to the digital push of India. Indian Digital Payments have registered unprecedented growth in terms of volume of transactions (CAGR of 58.9%) and also in terms of value (CAGR of 28.4%). But, in the global payments market, the Indian digital payments market didn’t perform well in many measures of digital payments growth including a number of digital transactions per capita per year and India has not featured in any top ten places. So, this research work focuses on identifying and analyzing the growth of the Indian digital payments market and its state in the global digital payments market. The research work is based on secondary data and the secondary data have been collected from central banks, reports, and Bank for International Settlement. The purpose of this research work is descriptive in nature and it has employed analytical research type. The study found through its scientific research approach that Digital payments market in India has grown steadily since 2014 and it still lacks behind many countries of the world in terms of measures of digital payments growth which are Cash in Circulation to Gross Domestic Product ratio, Number of transactions per inhabitant and so on.