The payment industry in India has been quite interesting to keep an eye on. With a strong focus on mobile, and a surge in Fintech startups, exciting things are bound to happen. The payment landscape is changing, and the future is looking very bright right now. Cashless payment solutions seem the right way to go, but that doesn’t mean consumers will embrace them overnight.
Venture capitalists have always taken a keen interest in the Fintech industry. The primary objective of investing is hoping to find the next unicorn. In the payment sector, such a dominant company could yield a tenfold return on investment quite easily. For now, it looks like those unicorns may hail from India in the coming years.
India Is A Rising Fintech Star
To be more precise, the amount of money invested in the India payment landscape has increased exponentially. Companies such as PayTM, Suvidha, and Freecharge are pushing for cashless solutions. India is a country with a strong focus on mobile, which is a perfect scenario for removing cash altogether.
But that is not all, as India is also home to one of the fastest growing populations. This will inevitably result in more digital payments, which fosters more innovation and competition. If all things go according to plan, cashless solutions will represent 59% of all consumer payments in India by 2025.
None of these efforts would even be possible without proper Internet penetration, though. India is a country where smartphones are the primary device to connect to the world. Computers are far too expensive, and not portable in most cases. As a result, the country is the second largest in the world regarding mobile data subscriptions.
Fintech startups in the county have received US$186m from investors so far. After lagging behind for a few years, India is now on the same level as most countries in the world. All of these factors combined will lead to significant changes in the local payments industry. With cash usage on the decline and a growing demand for Fintech solutions, India will be the country to keep an eye on.
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