India citizens are starting to use digital paying platforms more – as aided by the support of government policies. India Supreme Court recently ruled that the Aadhaar and lack of infrastructure, such as pay point-of-sale terminals, may slow the rise of digital payments.
Digital payments have grown increasingly in the country. According to livemint.com, between 2015 and 2017, digital payment transactions grew at an average annual pace of more than 50% outpacing other major developing countries.
Despite all this growth India continues to fall behind when compared to other members of the BRICS (Brazil, Russia,India, China and South Africa) bloc. Among members of the coalition, Russia leads with the highest non-cash transactions.
An average adult in Russia make more than 200 digital payments per annum, an average Indian adult makes less than 20 digital transactions each year. India also falls behind in terms of the value in costs of the transactions.
According to statistics from the Bank for International Settlements, in 2017, the ratio for non-cash transactions to gross domestic product (GDP) stood at around 1.7 for India, the lowest among BRICS, and significantly behind China’s ratio of 45, reports livemint.com.