According to S&P Global Market Intelligence, mobile payments in India initiated by payment apps comprising account-to-account transfers and payments made from stored-value accounts witnessed a 163 per cent growth at $287 billion in 2019.

On the segment front, point-of-sale transactions completed using debit and credit cards, including online and in apps witnessed a 24 per cent growth to $204 billion. While, card and mobile payments as a percentage of India’s gross domestic product (GDP) reported a growth of 20 per cent in the quarter ended (QE) December 31, 2019.

Interestingly, card and mobile payments exceeded ATM withdrawals for the first time in 2019.

According to the firm, high growth rates in cashless payments seen in recent years are unlikely to repeat amid an economic slowdown due to the novel coronavirus pandemic. However, it expects mobile payments to be more resilient and gain a bigger lead over card payments, as their uptake will accelerate due to ongoing social distancing measures and concerns over usage of cash and plastic.

S&P Global Market Intelligence estimates that card purchases and unified payments interface (UPI) mobile payments represented only 21 per cent of $781 billion in in-store transactions in 2019. Further, Google Pay and PhonePe led UPI payment apps as the two apps handled over seven billion transactions in total, representing more than two-thirds of UPI transactions in 2019.