According to a recent report by Omdia, a London-based global technology research firm, merchant payments through the Unified Payments Interface (UPI) in India are expected to reach $1 trillion by 2026, driven by strong adoption of digital payments and government policies supporting cashless transactions. The report predicts that UPI merchant payments will account for 10% of overall merchant transactions in India by 2026, up from just 1% in 2019. This growth is expected to be driven by the increasing use of UPI QR codes and the adoption of UPI-based payments by small merchants, street vendors, and mom-and-pop stores.
The report also noted that the COVID-19 pandemic has accelerated the adoption of digital payments in India, as consumers have increasingly preferred contactless payments over cash. According to a report by ACI Worldwide and GlobalData, Unified Payments Interface (UPI) merchant payments are expected to reach $1 trillion by 2026. The report highlights that the growth of UPI merchant payments is driven by an increase in digital transactions and a surge in online shopping during the COVID-19 pandemic. The report also suggests that the introduction of new features, such as recurring payments, standing instructions, and QR-code-based payments, will further boost UPI merchant payments. Furthermore, the report predicts that UPI will continue to dominate the Indian digital payments market in the next five years, with its market share expected to increase from 42% in 2021 to 59% in 2026.