India UPI Apps Market Research Report: Forecast (2024-2030)

Market Definition

Unified Payment Interface (UPI) is a real-time payment system, developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI). UPI system facilitates multiple banks in a single mobile application, making it easier and seamless for financial transactions. The UPI applications enable sending & receiving money, bill payments, and online shopping using the IMPS network.

Market Insights & Analysis: India UPI Apps Market (2024-30):

The India UPI Apps Market size is projected to grow at a CAGR of around 10.5% during the forecast period, i.e., 2024-30. The India Unified Payments Interface (UPI) Apps Market has various factors presenting robust growth. Government initiatives like Digital India and financial inclusion programs accelerated digital payment solutions i.e. UPI Apps. Additionally, the ongoing adoptions of smartphones and 5G technologies across urban and rural areas of India, have significantly provided a wide range of UPI users. This increasing demand for contactless transactions makes the use of UPI easy by linking multiple bank accounts to a single UPI ID hence augmenting market growth & expansion.

However, instead of fast growth, the UPI Apps Industry has a few challenges to face. The main challenge is the concern over fraud and cybersecurity, which can potentially hamper used trust and also slow down the adoption. Moreover, there are multiple leaders in the industry leading to intense competition, which can hamper margins and also profitability and make it difficult to generate revenue.  Additionally, digital literacy and infrastructure are also major challenges, especially in semi-urban or rural areas, which limits the potential use of UPI Apps. On the other hand, minimizing these challenges by expanding the services to these areas will also open up a great opportunity for the India UPI Apps Market. Recent improvements in digital infrastructure and smartphone penetration in these areas give the scope to increase the potential user base for UPI apps. Moreover, the integration of advanced technologies like AI & ML could help in cyber security measures and can also provide an opportunity for companies to make them stand apart and gain a competitive advantage along with user loyalty and profitability.

The India UPI Apps Market is growing continuously as it presents a significant trend towards the integration of UPI apps with various financial services and e-commerce platforms. This integration fosters a comprehensive financial ecosystem, also supports financial inclusion, and increases transaction volumes. In the UPI Apps Industry, there is also a notable trend of integration with emerging technologies like blockchain and biometric authentication to enhance user security and convenience. Overall UPI Apps help to transform India’s payment landscape by cashless transactions.

India UPI Apps Market Driver:

Government Policies for Digital Payments & Financial Inclusion Driving Market Growth – The expansion of the Unified Payments Interface (UPI) Apps market in India is majorly driven by Government initiatives. Indian government promotes digital payments and financial inclusion actively through various schemes and campaigns like the Digital India Initiative, Aadhaar Enabled Payment System (AEPS), Cashless Transactions Campaigns, and Financial Literacy Campaigns. These initiatives promote merchants, small businesses, and large retailers to accept the UPI payments application in everyday transactions. The government also encouraging digital payment by integrating UPI apps in various Government services like Electricity bill payments, LPG payments, and ticket booking services. These combined initiatives of the government boost the Indian UPI Apps Market. For instance,

• In March 2023, The Ministry of Power declared that it would be adopting UPI as a payment option for electricity bills across the country. This move aims to simplify the payment process for millions of consumers and promote the adoption of digital payments.

India UPI Apps Market Growth Opportunity:

Untapped Rural & Semi-Urban Regions Offering Lucrative Growth Opportunities – India is a developing country, hence it offers a substantial growth opportunity in rural and semi-urban markets. These regions traditionally have no internet connectivity and lower smartphone penetration hence these regions are untapped in terms of digital financial services. But with recent developments more people in these areas gain access to the internet and mobile phones, creating a potential user base for the UPI apps industry. Spreading awareness and proper training about the effective and safe use of UPI apps can enhance the adoption rate in these specific areas. Demonstrating the benefits of UPI apps, like their ability to offer instant transactions, bill payments, and other financial services, can meet this demand effectively without visiting the offices. This will not only create the user base for UPI apps but also contribute to the broader goal of financial inclusion.

India UPI Apps Market Challenge:

Cybersecurity & Fraud Concerns to Hinder Market Growth – There is a major challenge in India's UPI Apps Industry to protect digital transactions from fraud and cybercrime. As the market is growing rapidly, cybersecurity and fraud concerns are crucial to be addressed. In India, the rate of cybercrime is increasing due to some loopholes in technologies and coding. The risk of cybercrime like phishing scams, account takeovers, and fraud has escalated with the increasing use of UPI apps, restricting new users from building trust in digital payments for their daily transactions. Ensuring the security of UPI apps for both individual users and the financial ecosystem is vital for maintaining trust and continuous growth in the digital payments landscape.

India UPI Apps Market Trend:

Increasing Integration of UPI with Financial Services & E-Commerce – A wide range of financial services and e-commerce platforms is integrating with UPI apps for their daily transactions. Various financial products and services, such as investment platforms, insurance products, and microloans are increasingly adopting UPI apps. UPI apps offer real-time seamless transactions for managing the user finances. Additionally, to enhance the convenience for users making online purchases, e-commerce platforms are also integrating with UPI apps as a preferred payment option. This trend is not only essential for users for convenient shopping but also for the comprehensive financial ecosystem. Integration of UPI with various services will increase the size & volume of the India UPI Apps Market.

The India UPI Apps Market (2024-30): Segmentation Analysis

The India UPI Apps Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Type:

• Peer-to-Peer (P2P) Payments
• Peer-to-Merchant (P2M) Payments

Among the two types of payments in the India UPI Apps Market Peer-to-Merchant (P2M) payments segment is anticipated to seize the largest market share. This segment holds the transactions where consumers use UPI apps to pay various merchants for their goods and services. The convenience and speed of UPI transactions which are on real real-time basis without any cash or card swiping machines drive the retail sector to adopt digital payments. As small and medium enterprises, adopt UPI Apps for seamless transactions, the P2M segment is expected to see substantial revenue growth during the forecast period. Various government initiatives also support this trend and promoting digital payments and the increasing consumer preference for cashless transactions. Hence, P2M payments contribute to higher volumes of transactions and increased numbers of acceptance of UPI services across the retail sector.

Based on Application

• Money Transfer
• Bill Payments
• Point of Sale
• Others

The Money Transfer segment emerges as the major application segment in the UPI Apps Industry in India. This segment includes both peer-to-peer (P2P) transactions and peer-to-merchant (P2M), where P2P is used to transfer money directly to friends or family, and peer-to-merchant (P2M) transfers for various payments made to different merchants. UPI makes the transfer convenient, and cost-effective with higher speed on real real-time basis using smartphones or computers. Digital payment adoption in various sectors will continuously increase the demand for seamless and efficient money transfer solutions without visiting any bank. Consequently, the money transfer segment holds a significant market share and is anticipated to be in a similar trend in the coming years as well.

India UPI Apps Industry Recent Development:

• August 2024: Google Pay introduced UPI Circle, a feature allowing users to add family members and friends as secondary users, to make digital payments without linking their bank account.

• January 2024: Google Pay has signed a Memorandum of Understanding with the National Payments Corporation of India to expand the use of UPI to other countries. This will help Indian travelers to make payments in foreign countries using UPI.

Gain a Competitive Edge with the India UPI Apps Market Report

1. India UPI Apps Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & market share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. India UPI Apps Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.