Of the surveyed ecommerce merchants, 70% reported an increase in sales driven by higher UPI adoption and believe that by 2027, almost 90% of the ecommerce payments will be conducted through UPI
Currently, UPI enables about 45% of the payments in the country, and has brought down all the geographical barriers. Interestingly, about 70% of the UPI user base hails from outside Tier 1 cities with 80% of the new users hailing from Tier 2 cities and surroundings
It is pertinent to note that the next UPI boom is expected to be fueled by the geographies outside the top 40 cities in India
As India’s internet economy is projected to grow to $1 Tn by 2030 from $175 Bn in 2022, DPI (digital public infrastructure) continues to drive this growth thesis, ensuring an inclusive and expansive digital future, a report by consulting firm Redseer Strategy Consultants said.
The open network for digital commerce (ONDC), one of the DPIs initiated by the government, is poised to push growth in the ecommerce space across sectors and potentially generate $250-300 Bn in GMV (gross merchandise value) by 2030, the report added citing its study.