According to the Internet and Mobile Association of India (IAMAI), the total number of internet users in India stood at 354 million as of June 2015. This growth has been primarily on account of growth in mobile internet user base, which stood at 213 million as of June 2015. The number of mobile internet users grew by 45 per cent, while the total number of internet users grew by 32 per cent in 2014.

The IAMAI is of the view that internet in India has become inclusive, which augers well for the industry. Due to availability of local language content, the number of internet users in rural India grew to 127 million as of June 2015. The usage of social media by rural internet users has also grown over the past year. In 2015, the usage of social media in rural India has shown growth of 100 per cent while urban India registered a relatively lower growth of 35 per cent.

The growing internet penetration has facilitated growth in the digital market, which grew by 53 per cent in 2014, and the value for which stood at Rs 815.25 billion by the end of December 2014. This has also led to the growth in the digital payment industry, which grew by 40 per cent to reach Rs 1,201.20 billion by December 2014. The metro cities of Delhi, Mumbai, Kolkata and Chennai contributed around 60 per cent of the total digital payment gateway market.