Indian Fintech Market Is Expected To Reach $150 Billion By 2025, Says Pankaj Chaudhary
The minister of state for finance said India's fintech adoption rate is 87 per cent as against the global average of 64 per cent
Pankaj Chaudhary, minister of state for finance, speaking at a conference on Wednesday said the growth of Indian fintech startups has been exponential and the market is expected to reach $150 billion in valuation by 2025, as he inaugurated Assocham's international fintech festival. Top officials of the major fintech companies also participated in the conference. The minister said the financial sector in India is going through a transformation and has emerged as one of India's immensely growing sectors. It has also gathered increasing interest from all stakeholders, both within and outside the country.
"A majority of the Indian fintech startups are not even a decade old, but the progress and growth shown by these firms has been exponential over the past few years. Indian fintech market is expected to reach $150 billion by 2025. India's fintech adoption rate is at 87 per cent as against the global average of 64 per cent," Minister said in a statement.
Saurabh Garg, UIDAI CEO, in a news report as quoted as saying, "Aadhaar enabled payment system in a way has revolutionized banking by doing away with the need for having a brick-and-mortar branch. More than 50 lakh of banking correspondents across the country are carrying out 'cash in-cash out' kind of transactions using the system. Aadhaar also offers the ability to easily onboard customers."
Speaking at the conference, Ambarish Kenghe, Google pay vice-president said, "The unified payments interface has made it easy for people to carry out the transactions and the technology is successful because various partnerships have been put in place to deploy it. Partnership is absolutely critical to success."
Highlighting the scope of market expansion through credit card penetration, Kenghe said, "As of 2021, credit card penetration remains less than five per cent in India, while it is one of the biggest retail forms of credit for consumers in India. That figure in the US is 300 per cent because people have multiple credit cards. Crucially, this can also become a key revenue driver for banks and fintech players, which will allow them to fuel more innovation."
According to reports, the global fintech market size was valued at $110.57 billion in 2020, and is expected to reach $698.48 billion by 2030 at a CAGR of 20.3 per cent.