In sync with the growing popularity of digital payments, Financial technology software services market is expected to experience a robust growth and touch $14 billion in next three, said Amitabh Kant, CEO, NITI Aayog.
“Currently, more than 600 startups are in the field of lending, payments, insurance and trading and the current financial technology software services market stands at $ 8 billion and this is expected to grow to about $14 billion by 2020,” said Amitabh Kant said.
Explaining about the growing usage of digital payments post the demonetization drive, he said that the volume of digital payments has reported an increase by 55 per cent in 2016-17 as compared to the previous fiscal.
The average CAGR experienced in the previous five years was merely 28 per cent he added.
In addition to this, he said that the debit card usage has inflated by 104 per cent, pre-paid instruments reported a jump of 163 per cent, POS installation rose by 83 per cent.
He also said that Reserve Bank of India (RBI) spends whopping Rs 21,000 crore in currency circulation per annum.
“Around half of that just in ATM operations. So, my personal view is that Indian rural market is just waiting to become a prime customer of the financial technology revolution,” he said, at a CII event in New Delhi.
“India is on the top of ten financial technology markets in the world. Current financial technology offerings are mainly accessible to elite. Therefore, there is a need to reorient innovative potential to solve the problem of rural and unbanked India,” he added.