India’s fintech industry is projected to grow at a cumulative annual growth rate of 31 percent, reaching about $420 billion by 2029, according to Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director of NPCI. As of 2024, the fintech industry is estimated to be worth about $110 billion, Choudhary stated at the inaugural session of the 2nd India International Fintech Festival, organized by ASSOCHAM in the capital on Thursday.
India boasts over 9,000 fintech entities, ranking third globally in terms of the number of fintech entities and commanding 14 percent of start-up funding in the country, Choudhary noted. The adoption rate of fintech in India is 87 percent, significantly higher than the global average of 67 percent.
“The Indian fintech ecosystem is expected to continue to proliferate, driven by factors such as favorable policies, the development and existence of enabling Digital Public Infrastructures (DPIs), institutional support, and technological innovations. The government’s push towards a digital economy, coupled with a young and tech-savvy population, is likely to propel the fintech sector to new heights. NPCI has set an ambitious target of achieving 1 billion UPI transactions per day in the coming years,” Choudhary said.
Archana Vohra, Managing Director at Google, emphasized, “UPI is not just a set of tech rails; it involves immense work to ensure digital payments are easily accessible. True interoperability is crucial. The economic and ecosystem enablement provided by UPI is remarkable. Fintech products need to be built for scale and diverse user cohorts. It’s important to understand the nuances of India and address them locally. Persistence and resilience are key for the next 10 to 15 years as we go deeper into the fintech space.”
Aman Jain, Director of Public Policy at Amazon India, highlighted, “Smartphone penetration, growing internet access, and the government’s commitment to financial inclusion will contribute to approximately $10 trillion in overall digital payments volume in India by 2026. While 60 percent of millennials and Gen Z prefer digital payments, these methods have also penetrated small towns, underscoring the immense potential for growth and inclusion as fintech solutions become more accessible to consumers.”
Vikas Verma, COO of Mastercard, remarked, “Access to credit is one of the fundamental catalysts propelling India towards its Viksit Bharat vision. Fintechs can enable access to credit for underserved segments of our society.” He noted that only 14 percent of MSMEs currently have access to any formal form of credit. In agriculture, just one in four farmers have access to formal credit sources, even after 70 years of India’s Independence.