Growth of FinTech in India – Tier 2 Sector
20th Jun 2022
India is amongst the fastest growing fintech markets in the world! Our fintech industry’s market size was $31 Bn in 2021 and is estimated to reach ~$ 150 Bn by 2025. As of March 2022, India’s Unified Payments Interface (UPI) has seen the participation of 313 banks and has recorded 5.4 Bn monthly transactions worth over $128 Bn
But where is this growth coming from?
Digital payments witnessed a 73% growth in H2 of 2020, and tier II and III cities contributed to 54% of the digital transactions in 2020 – a growth of 92% in just one year.
In addition, some states like Chandigarh, Punjab, Arunachal Pradesh, Assam, and Kerala witnessed a growth of 205%, 187%, 127%, 124%, and 117%, respectively, along with the growth from other states as well.
So, what does that tell us about our growth story? With greater smartphone and internet penetration, combined with financial awareness and an increasing willingness toward digital payment solutions, India is surely embracing digital payments irrespective of geographies.
