India’s digital payments forecast to reach 702 billion transactions

India’s digital payments market could reach approximately 702 billion transactions annually by the financial year ending March 2031, according to PwC India. The projection points to further expansion in everyday electronic payments, with wider merchant acceptance and new financial services expected to support growth.

PwC’s Indian Payments Handbook 2026–2031 estimates transaction volumes of approximately 266 billion in the financial year ending March 2026, valued at 362 trillion rupees.

By the financial year ending March 2031, annual transaction value is projected to exceed 1,086 trillion rupees. That would represent roughly three times the starting value and more than double the number of transactions. These figures are forecasts, rather than confirmed future outcomes.

Growth moves beyond new accounts
PwC identifies deeper merchant participation, a wider range of payment uses, credit-linked services and artificial intelligence among the factors shaping the next phase.

The emphasis suggests that growth will increasingly depend on how frequently people use digital payments and how many everyday transactions those services can support.

For merchants, greater acceptance can make it easier to serve customers who prefer electronic payments. However, the practical value also depends on reliable settlement, understandable charges and straightforward ways to resolve failed transactions.

Trust remains a commercial challenge
A separate PwC fintech survey reported that 41% of respondents identified customer trust and adoption as the biggest barrier to expanding agentic payments, where AI systems help initiate or manage transactions. Fraud, security and risk management followed at 33%.

The findings highlight the difference between introducing a technical capability and persuading customers to use it.

For an automated payment service, customers need clarity about what they have authorised, how to stop a transaction and where responsibility lies when something goes wrong.

Scale must translate into useful services
India’s projected expansion creates opportunities for banks, payment providers and businesses supplying the underlying technology. Higher transaction volumes, however, do not automatically produce higher profits or broader financial inclusion.

The longer-term test will be whether providers can combine commercial sustainability with affordable, dependable services. For consumers and smaller merchants, the significance of the forecast lies in easier everyday payments and greater confidence in using them.

Newshub Editorial in Asia – 1 October 2026