Honorable Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman today confirmed India’s fintech adoption rate to be 87% – a significant jump beyond the global average rate of 64%.
She said this while speaking at the Global Fintech Festival organised by the Payments Council of India (PCI), the Internet and Mobile Association of India (IAMAI), Fintech Convergence Council (FCC), and National Payments Corporation of India (NPCI).
Startup terminology: What do you mean by fintech adoption?
It refers to the adoption of digital money transfer facilities and/or payment services in a country. On the consumer side, this adoption has grown rapidly across the globe starting from 2015. As of 2019, 75% of consumers have adopted digital payments in one form or the other globally, says Statista.
The current adoption rate shows the nation to be a prime destination for digital payments. The investments in the fintech industry have grown manifold and attracted a funding of $2 billion in 2021.
She also emphasized on the tremendous growth of digital payments (via UPI) from Rs. 2 lakh crores in 2019 to Rs. 6 lakh crores in 2021 till now. It shows the evolving participation of users, fintech industry, and the government in this digital ecosystem.
She has also unveiled the nine ‘UN Principles for Responsible Digital Payments’ during the festival, which are:
- Treat users fairly
- Ensure funds are protected and accessible
- Prioritize women
- Safeguard client data
- Design for individuals
- Transparency on Pricing
- Provide user choice through interoperability
- Make recourse clear, quick, and responsive
- Champion value chain accountability
These principles have been developed by the UN-based Better-Than-Cash Alliance and are built on the values of trust, inclusivity, and transparency. They have been developed to respond to the growing need for digital payments while also preparing for the next pandemic, if any. They also cover Who, What, How-questions related to the responsibilities that fall on various stakeholders involved in digital payments.
She was accompanied by Reserve Bank Deputy Governor T Rabi Sankar at the festival who talked about the need for advanced technological solutions for increased penetration of digital payments and prevention of digital frauds.
For more updates on the fintech industry, startups, digital payments, and more, read Fintech Today.